SIX Swiss Exchange is today launching Sponsored Funds, a trading segment in which conventional investment funds can be traded. This segment has been realized in conjunction with Bank Julius Baer & Co. Ltd, which is also acting as the first sponsor.
Until now, investors were only able to subscribe to or redeem fund units on the primary market. The new trading segment now allows them to trade conventional investment funds including equities, bonds, structured products and also exchange traded funds (ETFs) on the stock exchange efficiently and – above all – in a timely way that suits the market. This option to process orders on the secondary market differs from the primary market, in which calculation of the execution price – NAV (net asset value) – and order execution are subject to a delay.
As the first sponsor and market maker, private bank Julius Baer is bringing a range of over 250 products from 60 leading providers to the exchange. The product selection covers a huge variety of asset classes, countries, regions, sectors, themes and strategies.
The Sponsored Funds trading segment is part of the «Over-the-Exchange»-initiative from SIX Swiss Exchange, with which it is offering attractive new stock exchange services to its broadly diversified customer base. The new trading segment is based on the rules for admitting investment funds for trading in the SIX Swiss Exchange – Sponsored Investment Funds segment, which were brought into force by SIX Exchange Regulation on 1 February 2013. Sponsors can now apply to SIX Exchange Regulation for domestic and foreign investment funds to be admitted for trading, provided that they have been approved by the Swiss Financial Market Supervisory Authority (FINMA) or authorized for distribution in and from Switzerland. The sponsors undertake to comply with the reporting and maintenance requirements and to guarantee market making activities. Exchange traded funds (ETFs), exchange traded structured funds (ETSFs) and real estate funds cannot be traded in the new segment.
Alain Picard, Head Product Management at SIX Swiss Exchange, comments: «SIX Swiss Exchange is delighted to be working with Bank Julius Baer in launching an innovative solution for the Swiss financial center. This solution combines existing competencies in fund trading with one of the leading trading platforms in the world, offering genuine added value for trading participants and their clients.»
Oliver Heusser, Head Fund Secondary Trading at Bank Julius Baer adds: «The new trading segment offers fund investors standardized and transparent order execution in investment funds including all the benefits of regulated exchange trading such as price transparency with binding buy and sell prices throughout the full trading day, as well as the use of limited orders.»
Specialists from Bank Julius Baer and SIX Swiss Exchange will be providing additional information on the new segment at a launch event at 9 am on 13 March 2013 at the ConventionPoint in the SIX Swiss Exchange building. Press representatives are warmly invited to this event. Please address any enquiries about this and registrations for the event to pressoffice@six-group.com.
Further information on the subject of Sponsored Funds: www.six-swiss-exchange.com/sponsoredfunds