Exchange Trading

SWX Europe provides a single open-architecture platform which is perfectly positioned to provide efficient, low-cost trading and straight through processing of trades through to clearing and settlement.

Electronic trading begins with the investor. Member firms compile orders in their own in-house systems. This data is then forwarded to the member's trading desk. The trader decides how the order is to be executed. On SWX Europe this can be via the central order book (on order book) or off order book and then trade reported to SWX Europe.

On order book

Orders are routed directly into the SWX Europe Trading System. From here, orders are forwarded to the central order book in the Exchange System, which automatically validates, confirms receipt of, and gives a time stamp to each order.

In accordance with clearly defined matching rules, buy and sell orders are matched against each other in the central order book. Regardless of their size or origin, incoming orders are executed on a price/time priority. Data on trades executed via the order book are disseminated to financial information providers such as Reuters, Bloomberg and Telekurs.

Trades executed via the central order book, with the exception of trades in separate lines, trigger an automatic clearing and settlement instruction which is routed to SIS SegaInterSettle AG, Euroclear UK & Ireland Limited or Euroclear.

Off order book

Alternatively, orders may be executed directly between two market participants and trade reported on SWX Europe. Members can choose to settle off order book trades manually or automatically depending on the transaction type.