The Swiss Stock Exchange (SIX) is set to establish a jointly owned company, RF Nordic Express AB, with Nasdaq, which will look to expand the current European microwave network.
According to SIX, the expansion will help foster equal access to the most modern market data transmission technology for the benefit of all market participants.
Microwave technology enables the fastest transmission of market data between trading centres as signals travel at the speed of light and are relayed through the air in the most direct way possible.
This will enable SIX trading participants to identify price movements and implement investment decisions as quickly as possible.
The new company RF Nordic Express AB will build and operate microwave routes for the transmission of market data from Stockholm to London.
Having taken a majority stake in the operator of its microwave network (12H AG) earlier this year, SIX said it now owns and operates the largest microwave network in Europe.
This network, SIX explained, allows all its trading participants to benefit from low-latency market data transmission from Zurich to London, Frankfurt and Milan as well as from Milan to Frankfurt and London.
Meanwhile, equal access to the microwave network is ensured for all trading participants at both regulatory and technical levels, in line with Switzerland's legal framework.
Thomas Zeeb, head securities and exchanges and member of the executive board, SIX, commented: “The new joint-venture marks the extension of this long-standing and successful partnership and is a testament to the innovative nature of the Swiss Stock Exchange.”
“It leverages the benefits of microwave technology across Europe to ensure fair and more efficient trading and highlights how the Swiss Stock Exchange deploys breakthrough technology for all market participants.”
Henrik Husman, vice president European equities at Nasdaq, said: “Technology and innovation are driving forces behind making markets more efficient and we are happy to partner with SIX in bringing faster and more secure transactions to our customers.”
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