The SWX Swiss Exchange and virt-x, its London-based securities exchange, announced on Tuesday a reduction in their fees and a revised pricing model that will take effect on 1 April 2008. The lower fees will deliver CHF 40 million in estimated annual savings for users (based on 2007 first half-year revenues), representing a further 15% reduction in the cost of trading following a headline price cut of 15% on virt-x at the start of 2007, say the firms.
The fee reduction is the latest step in SWX and virt-x's re-pricing program, which saw a 100% trading-fee waiver of CHF 33 m in the last quarter of 2006 and a subsequent 15% headline price cut in virt-x fees in January 2007.
The revised pricing model, according to the companies, will aim to offer a simple and straightforward tariff structure providing transparency and choice and the introduction of volume discounts that reward a customer's scale of contribution.
The new tariff structure is part of the SWX Group's 'Trading for the Future' programme, which will facilitate increased levels of algorithmic trading and direct market access (DMA) opportunities for market participants through a programme to provide greater capacity and reduced latency.
"We have long recognised the importance of providing cost-effective trading services and our new tariff structure will deliver further important savings for intermediaries and investors alike," notes Jürg Spillmann, head, executive committee, SWX Group.
"We are committed to driving growth in Swiss blue-chip trading and today's announcement represents the latest step in our strategy to enhance our overall service offering and deliver greater economic value to customers and investors," comments Jim Gollan, chairman, virt-x.