SWX Group and Deutsche Borse AG will combine their trading activities in structured products as of 1 January 2007 in a jointly owned subsidiary known as “Alex”. Alex has set the goal of becoming Europe’s leading exchange in this market segment.
On 23 October 2006, the partners signed an agreement to found and operate a joint securities exchange organisation. With this cooperative venture, the SWX Group and Deutsche Borse AG are further expanding their existing collaboration, two examples of which are Eurex and STOXX.
“Alex will focus exclusively on structured products. As a specialised exchange, it can address more directly the specific needs of customers in this segment,” says a joint spokesman for SWX Group and Deutsche Borse AG. “The advantages of Alex also lie in the aggregated liquidity that will be attracted to this centralised trading venue from all corners of Europe and a large network of participants. Moreover, Alex will utilise various pricing procedures. Issuers may choose the market model that is best suited to the trading of their structured products. This new European specialised exchange is also planning to implement in the foreseeable future the clearing and settlement structures that will enable crossborder transactions to be conducted at local tariffs.”