The SWX Swiss Exchange and virt-x, its London-based securities exchange, today announced a substantial reduction of their fees and a revised pricing model that will take effect on April 1st, 2008. The lower fees will deliver CHF 40m in estimated annual savings for users (based on 2007 first half-year revenues); this represents a further 15% reduction in the cost of trading following a headline price cut of 15% on virt-x at the start of 2007.
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 33m in the last quarter of 2006 and a subsequent 15% headline price cut in virt-x fees in January 2007.
The key features of the revised pricing model are as follows:
- Estimated annual savings of CHF 40m, based on 2007 first half-year revenues (representing a reduction in the cost of trading to users of 15%).
- A simple and straightforward tariff structure providing transparency and choice.
- The introduction of volume discounts that reward a customer’s scale of contribution.
- Introduced on 1 April, subject to member readiness.
- Estimated annual savings of CHF 40m, based on 2007 first half-year revenues (representing a reduction in the cost of trading to users of 15%).
- A simple and straightforward tariff structure providing transparency and choice.
- The introduction of volume discounts that reward a customer’s scale of contribution.
- Introduced on 1 April, subject to member readiness.
- Estimated annual savings of CHF 40m, based on 2007 first half-year revenues (representing a reduction in the cost of trading to users of 15%).
- A simple and straightforward tariff structure providing transparency and choice.
- The introduction of volume discounts that reward a customer’s scale of contribution.
- Introduced on 1 April, subject to member readiness.
- Estimated annual savings of CHF 40m, based on 2007 first half-year revenues (representing a reduction in the cost of trading to users of 15%).
- A simple and straightforward tariff structure providing transparency and choice.
- The introduction of volume discounts that reward a customer’s scale of contribution.
- Introduced on 1 April, subject to member readiness.
The new tariff structure is part of the SWX Group’s "Trading for the Future" program, which will facilitate increased levels of algorithmic trading and Direct Market Access (DMA) opportunities for market participants through a program to provide greater capacity and reduced latency.
Jürg Spillmann, head of the SWX Group Executive Committee, noted: "We have long recognized the importance of providing cost-effective trading services and our new tariff structure will deliver further important savings for intermediaries and investors alike."
Jim Gollan, chairman of virt-x, commented: "We are committed to driving growth in Swiss blue-chip trading and today’s announcement represents the latest step in our strategy to significantly enhance our overall service offering and deliver greater economic value to customers and investors."
