SIX Swiss Exchange launches new product segment for ETPs

In drafting a new regulatory standard, SIX Swiss Exchange has completed the groundwork for launching a new segment for Exchange Traded Products (ETPs). SIX Swiss Exchange is thus promoting product diversity and enabling issuers to offer investors innovative solutions.

Exchange Traded Products are collateralized, non-interest-bearing bearer debt securities. They track the performance of an underlying asset either with or without leverage.

The Additional Rules for the Listing of Exchange Traded Products enter into force on 15 October 2010. The first products in this new segment are expected to appear during November 2010 at SIX Swiss Exchange. In order to ensure continuous, liquid trading on the Exchange, at least one market maker will be appointed for each product. SIX Swiss Exchange is providing an efficient trading platform and the requisite market controls.

ETPs are not investment funds and are thus not governed by the Swiss Federal Act on Collective Investment Schemes (CISA). They are subject to a standard listing procedure overseen by SIX Exchange Regulation. The rules pertaining to the admission of ETPs and maintaining their listing have been drafted by the SIX Swiss Exchange Regulatory Board and approved by the Swiss Financial Market Supervisory Authority FINMA.