Swiss digital stock exchange offers partners ownership stake
The Swiss stock exchange is offering strategic partners a stake of up to 30% in its new digital assets trading platform. The SDX digital exchange hopes to launch by the end of this year, trading digital shares, bonds and other assets on a distributed ledger technology (DLT) platform.
This content was published on
4 minutes
When not covering fintech, cryptocurrencies, blockchain, banks and trade, swissinfo.ch's business correspondent can be found playing cricket on various grounds in Switzerland - including the frozen lake of St Moritz.
Project leader Thomas Zeeb told swissinfo.ch that SIX Group, which runs the stock exchange, could allow banks, brokers and other digital asset companies to own nearly a third of SDX. The majority of the platform will be owned by the consortium of some 120 banks that comprise SIX Group.
“The SIX board is open to having a minority stake in SDX made available to strategic investors,” said Zeeb. “We are in discussions with a number of firms – such as large banks and broker-dealers – who are extremely interested in taking a stake in SDX because it gives them skin in the game in driving the ecosystem forward.”
“We are not just creating a new exchange, we are creating a new market environment. To create that environment we want to have the flexibility of allowing partners with the same vision to accompany us on that journey.”
That ‘ecosystem’ surrounding SDX currently includes Sygnum bank, the Daura digital share listing platform, Swisscom and Custodigit, which offers secure storage for digital assets. They provide specialist services and know-how to operate the new digital asset trading system.
Two other partners are expected to be announced in the coming weeks, but Zeeb would not speculate on which firms might eventually take a stake in SDX.
So far, the project has yet to emerge from testing phase on its prototype and has been rocked by some key departures. CEO Martin Halblaub chose not to renew his contract in August following a difference of opinion on how SDX should be run. Interim CEO Tomas Kindler does not want to retain the position permanently. SIX has lined up a replacement but would not reveal the identity or say when they would start.
SDX Chief Client Officer Ivo Sauter also left in December, as did Alex Zinder who played a key role in designing and building the software architecture of the platform. Chief Digital Officer Sven Roth remains with the project as an external advisor, but his former role has now been taken on by Chief Operating Officer Paul Burd.
Zeeb regretted Sauter’s departure, which he said was sparked by Sauter’s desire to have a personal stake in SDX – a demand that was not possible to fulfill. But he insisted that SDX is on track to go live in the final three months of this year.
“This hasn’t affected our progress at all because the [120-strong] team is strong and their mandate is clear. At the launch we clearly want to have the people in place to drive the whole thing forward, but the departures have not affected the delivery of development, use case and architecture.”
Independence questioned
Some departing staff have been quoted in the media as complaining that SIX is stifling SDX’s independence. “We took a very strong view that given that we are building a regulated infrastructure for the market, it’s important that SDX does not drift too far away from the mother ship,” said Zeeb.
“It’s relatively easy to set up a digital exchange on a greenfield site, on its own, that doesn’t have back-up and depth behind the IT infrastructure, doesn’t necessarily have the robust compliance procedures in place. Leveraging what we already have in SIX is critically important in the context of building what we believe will be the infrastructure of the future with SDX.”
Zeeb, head of securities and exchanges at SIX, declined to reveal the amount of money that has been spent on the project, but said the “significant amount” was “nowhere near” the CHF100 million ($102 million) mentioned in media reports.
Popular Stories
More
Foreign affairs
Go to war or stay put? Ukrainian men in Switzerland face fresh dilemmas
Is reforming the Swiss pension system still possible, and if so, how?
Solutions still need to be found to meet the challenge of an ageing population and to improve the pensions of low-paid workers, the majority of whom are women.
Swiss to reduce administrative burden on farms from 2026
This content was published on
From 2026, the number of inspections of farms is to be reduced, without any loss of quality, said economics minister Guy Parmelin.
Swiss insurance boss proposes Singapore-style healthcare system
This content was published on
CEO of Swiss health insurer Sanitas has said that healthcare costs could be reduced if Switzerland were to follow the Singapore model.
Swiss minister talks crime and security in visit to the Netherlands
This content was published on
Swiss justice minister Beat Jans spent two days in the Netherlands discussing security, police cooperation and justice with international bodies.
Study finds more heavy metal detected in Swiss grassland
This content was published on
Copper and zinc can be expected to accumulate in the soil, particularly if farmyard manure is used for several years and is greater than the amount of nutrients absorbed by the grass. This was announced by the Federal Office for the Environment (FOEN) on Friday. The findings are based on the results of the seventh National Soil Monitoring of Switzerland (Nabo).
Lilo Baur wins Swiss Grand Prix for performing arts
This content was published on
The Swiss actress and theatre director Lilo Baur has received this year's Swiss Grand Prix for Performing Arts, also known as the Hans Reinhart Ring.
Court rules al-Qaeda supporter can stay in Switzerland
This content was published on
A Kurdish supporter of the Islamist terrorist network al-Qaeda can stay in Switzerland, the Federal Administrative Court has ruled. It has withdrawn the annulment of the man’s provisional admission.
This content was published on
The Office of the Attorney General of Switzerland (OAG) has closed criminal proceedings relating to the Swiss owners affected by the Volkswagen “Dieselgate” emissions scandal.
This content was published on
The employment outlook in Switzerland will remain stable towards the end of 2024, according to the KOF Swiss Economic Institute at ETH Zurich.
Swiss woman accuses Donald Trump of sexual assault
This content was published on
A former Miss Switzerland candidate has accused Donald Trump of sexually assaulting her in New York in 1993. The US Republican candidate’s campaign team has denied the accusations.
This content was published on
The Swiss stock exchange’s new distributed ledger technology (DLT) trading platform may be arriving slightly later than anticipated.
Swiss central bank asked to issue stock exchange digital currency
This content was published on
Stock exchange operator SIX Group revealed at the Crypto Valley Association conferenceExternal link that traders on its forthcoming SDX platform would be able to swap cash for a new digital token. This token would be used to pay for securities bought on the exchange and could be redeemed for cash when required. Digital tokens backed…
This content was published on
Germany’s largest stock exchange Deutsche Börse teamed up with telecommunications company Swisscom, three Swiss banks and two digital finance companies to pull off the transaction, it was announced on TuesdayExternal link. An unnamed Swiss company issued digital tokens representing shares, which were then traded among Falcon, Vontobel and Zurich Cantonal Bank. Clearing and settlement of…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.