Ten years ago, SIX Group was formed in a merger between SWX Group, Telekurs Group and SIS Group, creating a new vertical business model. Urs Rüegsegger, chairman of SIX Swiss Exchange, helped lead that transition and growth as CEO of the exchange for nine years before stepping down last December. JLN’s Jim Kharouf sat down with Rüegsegger at the WFE’s IOMA Conference in Chicago to talk about how SIX and its clearing business has grown over the past decade.
SIX Group’s exchange, clearinghouse and other business lines, including credit card transaction processing, have grown steadily over the past decade. Its cash equity clearing business has shown tremendous growth of more than 600 percent during that time, thanks to interoperability among European equity clearinghouses. SIX expanded its clearing membership base internationally. And by offering clearing on SIX from different exchange venues, customers have been able benefit from cross margining and other collateral benefits that lower costs by about 80 percent. But in today’s connected and uncertain markets, Rüegsegger believes the costs and risks of clearing should be revisited.
“One of my biggest concerns is whether a clearinghouse really gets fairly compensated for the risk it takes,” said Rüegsegger, who serves as vice chairman of the WFE. “I think as an industry that is something we should put some thought into because clearing is a very, very important function in the whole value chain of securities markets.”
Produced by Mike Forrester