The genesis of any trade execution is of course the order itself. By entering an order, a trader orders the Exchange System to buy or sell a certain number of securities. He or she may determine a limit or leave the pricing to the market by entering the order into the order-driven part of the Exchange System as a market order.
It is the task of the trader, based on the information available and in keeping with the client's instructions, to decide on the appropriate time to enter the order and, under circumstances, to set a reasonable price limit. Neither the Trading System nor the Exchange System investigates whether an order is executable or not, or whether it is logical in view of current market conditions (see Art 11 SESTA - disclosure, diligence and loyalty obligations).
In the case of an execution that deviates considerably from the going market price or was not concluded in a fair and orderly manner, Scoach Switzerland Ltd. has the right to intervene and declare the trade null and void (see Point 10.5 ff. RB)
Only those traders are admitted to Exchange trading who assume full responsibility for all actions they take by means of the SIX Platform. Among other things, each such action is documented by:
Aside from various details pertaining to the specific order (e.g. size, price and type of price, period of validity, type of order, etc.), it must be disclosed to the Exchange at the time of entry whether the order is being executed for the participant's proprietary trading account (nostro trade / principal trade) or on behalf of a client (riskless principal). This information is treated confidentially and not divulged to other participants or the public in general.
All up-to-date information pertaining to product specifications and the organisation of trading are published in the "SIX Swiss Exchange Guides".
During trading hours, all transactions concluded off-order book in any security listed on the Scoach Schweiz must involve an amount that exceeds the mandatory Exchange limit.
Outside of trading hours, all Scoach-traded securities may be traded off-order book without taking into account the mandatory Exchange limit (Point 11 ff. RB).
The Exchange System supports the various forms of off-order book trading. Throughout the entire period of Scoach operation, i.e. during continual trading, participants have at their disposal the following off-order book functional features:
In effort to ensure fair and orderly trading to the greatest extent possible, the SIX Swiss Exchange may intervene by taking appropriate measures (Point 10.5.1 RB and SIX Trading Guides).
A significant divergence from the reference price in certain securities can lead to a so-called "stop trading", which results in either a postponed opening (delayed opening) or a trading halt.
Example: The theoretical opening price of a security stands at CHF 86.25, i.e. a previously entered sell order would potentially match at that price with an existing order on the buy side. But because the implied execution price deviates too greatly from the reference price (e.g. CHF 91.35, equivalent to a 5.6 % variation), there will be a delayed opening.
Trading may be temporarily suspended in individual issues or entire market segments. For the securities involved, no opening or continual trading will take place.
Under certain circumstances, market control may investigate a transaction executed by the Exchange system and, if necessary, declare the trade null and void.
In the case of an execution that deviates considerably from the going market price and is thus at conflict with the principle of fair and orderly trading, Scoach Switzerland Ltd. has the right to intervene and nullify the trade (Point 10.5 ff. RB).
At present, the QPS capacity fee is applicable only to derivatives and structured products that are traded via the quote system. Management of Scoach Switzerland Ltd. reserves the right to alter the fee schedule if necessary.
If the rules laid down in the Trading Rules or the Directives of SIX are breached, Surveillance & Enforcement (SVE) or the Sanction Commission may pronounce sanctions against the participant or trader(s) concerned.
The procedure for investigating and sanctioning violations of stock exchange regulations is governed in the Rules of Procedure. Investigations opened prior to 1 July 2009 are subject to the Rules of Procedure dated 25 August 2006.
Pursuant to Point 18 RB, the following sanctions may be pronounced:
I. Against participants
II. Against traders