SIX Swiss Exchange enhances its transparency tool, Equity Liquidity Matrix, now covering all SPI securities

8 March 2011

The improved featured service further increases market oversight for investors and market participants SIX Swiss Exchange expands its transparency tool, Equity Liquidity Matrix, to cover all SPI securities. Designed for investors trading Swiss Blue Chips as well as Mid & Small Cap securities, the free web-based tool highlights the quality of the order books of SIX Swiss Exchange.

As the reference market for Swiss securities, SIX Swiss Exchange is assuring liquidity across its entire spectrum of equities in order to maintain a transparent, reliable and efficient price finding mechanism. By enlarging the Equity Liquidity Matrix (ELM) service to the Mid & Small Cap securities, SIX Swiss Exchange further increases market transparency as well as public awareness of the negative effects of market fragmentation.

Equity Liquidity Matrix is a user-friendly transparency tool that provides investors, issuers and market participants with a clear view on liquidity levels. It allows them to monitor in real-time the order book liquidity for several index aggregates and their individual constituents that are traded on SIX Swiss Exchange and at least one Multilateral Trading Facility (MTF).
Equity Liquidity Matrix provides a global view of five standard liquidity measures, including a ranking of the order books. Four of the five measures focus on pre-trade data i.e. the measurements of order book constellations before a trade is executed. All data are aggregated daily at individual securities level. An unbiased assessment of order book quality is guaranteed by using quantitative data from a neutral provider.

Ian Metcalfe, Investor Relations Officer of Nestlé, says: “The newly launched ELM service helps us to get a full picture of the volume development and trading on alternative venues in our shares as well as some interesting liquidity measures with just one click. It gives us a real-time overview of the market dynamics and therefore some very useful information.”

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