Associated Participation

The SWX Swiss Exchange is required by the Swiss Federal Banking Commission (SFBC) to operate as a central reporting office for securities trading. This is why the SWX introduced the option for securities dealers to become associated participants. This helps the financial institutions that engage in securities trading to fulfil their reporting requirements and gives them privileged access to stock-market information in comparison to non-participants. It also aids the legislature's objective of ensuring transparency and equal treatment of investors.

Associated participants enter into a contractual relationship with the SWX that is defined by rules which do not establish associate membership. A securities dealer that does not wish to enter into a private-law relationship with the SWX and therefore refrains from becoming an associate participant is also subject to applicable daily journal-keeping and reporting requirements.

Legal framework

In Switzerland, securities dealers require the approval of the Swiss Federal Banking Commission (SFBC). Professional securities dealing is governed by the Stock Exchange Act (SESTA). Gaining authorisation as a securities dealer subjects the securities dealer to SESTA and to the duty to report all transactions in securities that are admitted to trading on the SWX.

For further information, see the document entitled The reporting requirement for securities dealers.