SIX Swiss Exchange will cut its fees for trading stocks in the SMI Swiss blue chip index next month, which could be seen as an effort to rebuild relationships with its biggest customers.
From 1 December, those participants with monthly trading fees over CHF 300,000 – which will later be reduced to CHF 250,000 – will no longer have to pay the current fixed transaction fee of CHF 1 for continuous trading. Those with monthly fees between CHF 100,000 and CHF 250,000 will pay CHF 0.5, while standard level customers (those with trading fees up to CHF 100,000) will be charged CHF 0.75 per transaction.
However, the exchange will also start charging all participants the same auction trading fee of 0.75 basis points plus the fixed transaction charge, which will increase fees by 0.1 bps for those paying between CHF 100,000 and CHF 250,000 a month and by 0.2 bps for those paying more than CHF 250,000.
“These changes will result in significantly lower fees as a whole for clients with high transaction volumes. However, it is not only current participants who will benefit from the attractive fees, but new clients, too,” said Christian Katz, CEO of SIX Swiss Exchange, in a statement. “I am convinced that this will increase our ability to compete, as a cost-efficient exchange attracts liquidity and helps create better and more sustainable pricing.”
Trading in Swiss blue chips was repatriated to Zurich from London in May this year, to the dismay of some exchange members. However, Katz told theTRADEnews.com in August that SIX was looking at ways to reconnect with its core members, including revamping its fee schedule and enticing more high-frequency members to the platform.
“A few London-based members may have been upset following the repatriation, which should not be underestimated, but we are taking active steps to address this,” said Katz at the time. “We have been able to lower the cost of our overall operations and reduce member costs as a result of the repatriation.”
SIX Swiss Exchange had a 79% market share of trading in the SMI index in October, according to data vendor Thomson Reuters, down from 97% in April – the month before Swiss blue-chip trading was repatriated to Zurich.