SIX Digital Exchange receives green light

The stock exchange operator SIX can start the SIX Digital Exchange (SDX). It has received a green light for this from the Swiss Financial Market Supervisory Authority (FINMA). Specifically, FINMA has issued two approvals for operation of financial market infrastructures based on distributed ledger technology (DLT). According to a press release by FINMA, it has authorized SIX Digital Exchange AG to act as a central securities depositary and the associated company SDX Trading AG as a stock exchange. 

This is the first time that licenses have been issued for the Swiss financial market for infrastructures that facilitate trading of digitized securities in the form of tokens and their integrated settlement. SIX writes in a press release that with these licenses, SDX can now “offer the highest Swiss standards of oversight and regulation”.

SIX has been planning to establish its digital exchange since 2018. In a press release it describes receiving authorization from FINMA as a milestone in this process. Over the next months and years, SDX will now be further developed. To do so, SIX will enter into collaborations with partners and bring on board various global and local financial players to create “a global liquidity network for digital assets”. SIX announced in August that SDX will be led by David Newns from October onwards.

Thomas Zeeb, Global Head Exchanges and Member of the Executive Board of SIX, is quoted in the press release on the FINMA authorization, saying: “[…] while the final shape of the market is still evolving, this is an important milestone in providing institutional investors with a safe and robust infrastructure for Fintech, meeting all of the core requirements of a traditional exchange and CSD infrastructure.” He adds that with regard to this, the authorization process has proven to be an invaluable experience for SDX, for SIX, and for the industry as a whole.