The Swiss financial market comprises of a number of markets, such as the Swiss stock market, Swiss bond market, Swiss derivatives market, Swiss forex market and other markets. Swiss financial market has a strong role in supporting the national economy of Switzerland.
The SWX or the Swiss Stock Exchange is the principal stock exchange of Switzerland and is based in Zurich. Besides the trading of stocks and shares, the SWX also deals in the buying and selling of other types of securities like bonds issued by the Swiss Government and derivatives like stock options.
The SWX is a fully computerised stock exchange, which provides online share trading facilities to a number of traders and investors.
The SMI or the Swiss Market Index is the principal index of the Swiss Stock Exchange. The SMI represents 30 most important equity securities according to free-floating market capitalisation.
The infrastructure of Swiss financial market is frequently named as the Swiss Value Chain. The Switzerland financial market has undergone some significant transformations over the last 10-12 years. The conventional trading procedures in the Swiss financial market have been automated, reconstituted, and engrafted in the international model. The principle, which was implemented, is known as Straight Through Processing or STP.
The Swiss financial market also has the following segments:
- Swiss fixed income (bond) market
- Swiss derivatives market
- Swiss options and futures market
- Swiss foreign investment market
- Swiss foreign exchange market
- Swiss mutual fund markets
The infrastructure of Swiss financial market can be categorised into the following types:
- Trading system or exchange system, which deals with buying and selling of financial securities
- Clearing and settlement (closure) system, which deals with clearing and closure of transactions
- Payment system, which deals with payment of dealings