SWX Swiss Exchange says it is introducing a central counterparty service (CCP) for equities trading.
The exchange is teaming with Swiss central counterparty SIS x-clear and LCH.Clearnet to provide clearing and settlement of equity products on SWX.
SWX says the new service will be an extension of the current virt-x model and will provide standardised processing, reduce risk, improve settlement efficiency and potentially improve liquidity.
Jürg Spillmann, head of the SWX group executive committee, says: "Given the positive experience with the CCP Service in virt-x, we are pleased to roll it out across SWX Swiss Exchange as well. We are convinced that we thereby add significant value to the Swiss financial market."
The exchange says project will be implemented during the second half of 2006, subject to relevant formal and regulatory approvals.