SIX and Nasdaq Partner to Provide Greater Access to Market Data Using Microwave Technology
- 07.04.2020 09:27 am
The Swiss Stock Exchange and the operator of Nasdaq´s Nordic exchanges have signed a partnership in the first quarter of 2020 to expand the current European microwave network, fostering equal access to the most modern market data transmission technology for the benefit of all market participants.
The Swiss Stock Exchange has announced that it is to establish a jointly owned company with Nasdaq. The new company RF Nordic Express AB will build and operate microwave routes for the transmission of market data from Stockholm to London. Having taken a majority stake in 12H AG – the operator of its microwave network – earlier this year, SIX now owns and operates the largest microwave network in Europe. This network allows all Swiss Stock Exchange trading participants to benefit from low-latency market data transmission from Zurich to London, Frankfurt and Milan as well as from Milan to Frankfurt and London. The parties have agreed not to disclose the amount of the investments.
Thomas Zeeb, Head Securities & Exchanges and Member of the Executive Board, SIX, comments: “The new joint-venture marks the extension of this long-standing and successful partnership and is a testament to the innovative nature of the Swiss Stock Exchange. It leverages the benefits of microwave technology across Europe to ensure fair and more efficient trading and highlights how the Swiss Stock Exchange deploys breakthrough technology for all market participants.”
Henrik Husman, Vice President European Equities at Nasdaq, comments: “Technology and innovation are driving forces behind making markets more efficient and we are happy to partner with SIX in bringing faster and more secure transactions to our customers.”
Reinier Fliehe Boeschoten, Member of the Board of 12H AG, comments: “With this new investment by SIX in 12H AG we will be able to continue upgrading our current services and keep providing innovative new products to our customers. 12H AG is proud to be a part of SIX and is looking forward to working together with Nasdaq in creating a service between London and Stockholm.”
Microwave technology enables the fastest transmission of market data between trading centers. Signals are travelling at the speed of light and relayed through the air in the most direct way possible. This enables Swiss Stock Exchange trading participants to identify price movements and implement investment decisions as quickly as possible. As a result, risks can be managed more efficiently which benefits participants and end investors alike. It also improves liquidity and tightens spreads, which results in better execution for everybody trading Swiss securities on the Swiss Stock Exchange.
Equal access to the microwave network is ensured for all trading participants at both regulatory and technical levels, in line with Switzerland's legal framework. The Swiss Stock Exchange not only ensures the stability and availability of its trading infrastructure, but makes the most modern technology accessible to all its participants by partnering with leading technology providers.
Nasdaq and the Swiss Stock Exchange have been technology partners since 2005 and leverage Nasdaq’s trading technology for all markets, including equities, ETFs, structured products, funds and fixed income, as well as Nasdaq Market Surveillance and Nasdaq Pre-Trade Risk Management.
The Swiss Stock Exchange continues to leverage the most advanced technology within its unique market structure to create the best possible trading conditions in Swiss securities and to strengthen its position as the reference market. As a key pillar of the Swiss financial sector's infrastructure, it has a long tradition of moving the industry forward and has repeatedly taken a pioneering role in the development of electronic trading. In December 1995, it became the world’s first stock exchange to switch from floor trading to electronic trading with fully integrated transaction processing and settlement. This created the unique end-to-end Swiss Value Chain which SIX currently aims to replicate in the digital space by building the SIX Digital Exchange (“SDX”) ecosystem.
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Its diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. www.nasdaq.com
12H AG is the largest low latency microwave provider in Europe and majority owned by SIX. 12H AG owns low latency routes between London, Frankfurt, Zurich and Milan. 12H AG is committed to provide low latency services to all customers of SIX on an equal treatment basis.