Following extremely high volatility in 2015, trading on SIX Swiss Exchange and SIX Structured Products Exchange returned to normal levels in 2016. The Swiss Exchange posted an all-time trading high on 15 January 2015 when the euro exchange rate floor was removed. The crisis in Greece and market turbulence in China also boosted trading activity in 2015. Consequently, trading turnover in 2016 was down 6.8% year-on-year at CHF 1,279.3 billion, with transaction volumes declining 7.7% to 47,585,393. This translates to an average daily trading turnover of CHF 5.0 billion. The figures have significantly improved compared with 2014. In 2016, the highest trading turnover for a single day was CHF 11.7 billion, which was achieved on 18 March. The day was a triple witching hour: the third Friday of the third month in the quarter, which is when futures and options expire. The highest number of transactions – 395,787 trades – was recorded on 24 June 2016, the day when the result of the UK referendum on the EU was announced.
The number of new listings on SIX Swiss Exchange rose in 2016, with the addition of five new companies. The VAT Group's IPO was one of the largest stock market floats in Europe. There were 214 new listings in the ETF segment, bringing the number of ETFs listed on SIX Swiss Exchange to 1,210 at year-end. In addition, 266 new bonds (down 7.0%) and 35,630 new structured products (down 16.6%) were listed.
SIX Swiss Exchange introduced a variety of new services in 2016. Two new platforms went live. XBTR – a bilateral trading platform for structured products – began operating in April. In October, SIX Swiss Exchange introduced SwissAtMid, a non-displayed liquidity pool for Swiss equities. The platform generated trading turnover totaling CHF 627.8 million in 2016. SIX also launched a new index family for factor-based investment in September: the SPI Multi Premia®. Eight new indices will allow broader diversification and create additional potential for returns. SIX Swiss Exchange is also committed to developing potential in SMEs and created a new visibility initiative for listed small and medium-sized companies in September.
Christoph Landis, Division CEO SIX Swiss Exchange: "Despite low volatility levels, 2016 was a very good year for us. We did not match the record highs of 2015, but trading activities have increased significantly compared with 2014. As the leading marketplace for Swiss securities, we continued to demonstrate our capacity for innovation in 2016. The rollout of two platforms and several new services gives customers and investors in Switzerland and abroad more opportunities for diversifying their investment portfolios. We also make it easy to access leading international financial markets."
Overview of the individual segments
Performance within the equities including funds segment was stable year-on-year, despite reduced volatility. Trading turnover declined 5.2% to CHF 1,006.0 billion, while the number of trades fell by 7.3% to 45,554,934. In 2016, the most-traded securities were Nestlé N, generating CHF 123.6 billion, followed by Novartis N at CHF 116.5 billion and Roche GS at CHF 105.5 billion. The CHF bonds segment declined, with turnover down 23.3% at CHF 132.7 billion and trade volumes falling 19.8% to 379,855.
The global increase in demand for ETFs was also visible on SIX Swiss Exchange. The ETF segment posted trading turnover of CHF 103.8 billion in 2016, marking an all-time high and beating the 2011 record (CHF 101.9 billion). Trading turnover in the segment advanced 7.7% year-on-year, while the volume of trades fell by 9.6% to 961,841 in 2016. The list of ETF issuers trading on SIX Swiss Exchange was expanded to include Nomura in March and UniCredit in May. Twenty-two issuers currently offer 1,210 ETFs, an increase of 214 against end-2015.
The foreign currency bonds segment posted impressive gains in 2016. Trading turnover climbed 34.0% to CHF 20.5 billion, while the number of trades rose by 35.9% to 21,964. The structured products and warrants segment saw turnover fall by 39.1% to CHF 16.4 billion, with the number of trades down 23.0% at 666,799.
Among leading equity indices, the blue chip SMI® index came in at 8,219.9 points at end-December, down 6.8% year-on-year; the SLI Swiss Leader Index® closed at 1,297.7 points (down 2.6%) and the broaderbased SPI® at 8,965.7 points (down 1.4%). For bonds, the leading SBI® AAA-BBB Total Return index advanced slightly, up 1.3% at 136.2 points.
SMI End-of-Day Year high = 8'701.46 (05.01.2016);
SMI intraday Year high = 8'730.05 (05.01.2016);
Busiest trading days of 2016 = 395'787 Trades (24.06.2016); CHF 11'713,3 million turnover (18.03.2016).