SIX Swiss Exchange facts for kids

The SIX Swiss Exchange is Switzerland's main stock exchange. It is located in Zürich. A stock exchange is a place where people can buy and sell parts of companies (called "stocks" or "shares"). It also trades other financial items like government bonds and derivatives. Derivatives are special financial tools whose value comes from something else, like a stock's price.

The SIX Swiss Exchange is fully owned by a company called SIX Group. This group is controlled by many banks and financial companies. In 2018, the total value of all companies listed on the exchange was about 1.6 trillion Swiss francs. This makes it one of the biggest exchanges in the world.

History of the Exchange

Early Swiss Exchanges

The first stock exchanges in Switzerland started in different cities. They needed permission from the local government. The very first one began in Geneva in 1850. It was called the "United Brokers Association." Its trading floor, where people met to buy and sell, opened in 1855.

Other cities soon followed. Basel got its exchange in 1866, and Zürich in 1873. Smaller exchanges also opened in places like Lausanne and St. Gallen. During the First World War, most Swiss exchanges closed. Only the Geneva exchange continued to trade some bonds.

After the Great Depression in the 1930s, new banking laws were made. These laws helped control financial activities. Swiss exchanges were asked to work together in an association. This helped the Swiss National Bank have some influence over them.

Moving to Electronic Trading

After the Second World War, changes continued in the financial world. In the 1970s, the way money was exchanged between countries changed a lot. This led to new financial tools called derivatives. These tools helped manage new risks.

In 1993, the stock exchanges from Geneva, Basel, and Zürich joined together. They formed a new group called the "Swiss Securities Exchanges Association." This group started trading in 1995. It was the first stock exchange in the world to use a fully automated system. This meant buying, selling, and settling trades was all done by computers. The old way of people shouting orders on a "trading floor" ended.

The association changed its name to SWX Swiss Exchange in 1999. In 2008, it merged with two other companies, SIS Group and Telekurs. This new, bigger company was named SIX Group. The exchange then became known as SIX Swiss Exchange, which is its name today.

Modern Times and Digital Assets

In 2023, SIX Swiss Exchange joined with 13 other exchanges to create a new company called EuroCTP. This company aims to provide a "consolidated tape" for the European Union. This means collecting all trading information into one easy-to-read place.

SIX Group also started a new company called AsiaNext in 2021. This is a digital asset exchange for big financial companies. It focuses on trading digital assets, like cryptocurrencies. AsiaNext got a special license in Singapore in 2023.

How the Exchange Works

Key Stock Indexes

SIX Swiss Exchange has several important indexes. An index is like a basket of stocks that shows how a part of the market is doing.

• The SMI (Swiss Market Index) is the most famous. It includes the 20 largest and most actively traded companies on the exchange.
• The SPI (Swiss Performance Index) includes over 200 companies listed on the exchange.
• The SLI (Swiss Leader Index) is another index with some of the 30 largest companies.
• The SBI (Swiss Bond Index) tracks bonds issued in Swiss francs.

Technological Advances

SIX Swiss Exchange has always been a leader in technology. In 1962, it was one of the first exchanges to use TV broadcasts for information. In the 1980s, computers became very important. By 1996, all trading, including stocks, options, and bonds, was done electronically. This meant the physical trading floor was no longer needed.

In 2020, SIX Swiss Exchange worked with the Bank for International Settlements and Swiss National Bank. They tested a new digital system for central bank money. This shows their interest in new digital technologies.

Other Services Provided

SIX Swiss Exchange is part of the larger SIX Group. This group offers many other important services for the financial market in Switzerland. These include:

• Clearing: Making sure trades are completed correctly.
• Custody services: Safely holding financial assets for others.
• Market data: Providing information about prices and trades.
• Payment services: Handling money transfers.
• Running the system that processes large payments very quickly for the Swiss National Bank.

Headquarters

The main offices of SIX Swiss Exchange have moved a few times. In 2002, they moved to Selnaustrasse. In 2017, they moved again to the Hard Turm Park in Zürich-West.

Images for kids

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  SIX Swiss Exchange logo

See also

In Spanish: SIX Swiss Exchange para niños