24 Apr 2014 Report SIX Annual Report 2013

Transcription

Annual Report 2013
SIX Annual Report 2013
At a glance
Millions of financial transactions pass
through the SIX infrastructure every day:
securities are traded and settled, and cashless payments with or without cards are
facilitated and processed. In addition, financial information from around the world is
collected, processed and distributed.
1,004
CHF
Thanks to its cutting-edge technology, SIX sets global standards
for securities trading in terms of speed and capacity.
billion was traded on the stock exchange.
SIX Swiss Exchange is the reference market for
around 35,000 securities and one of Europe’s
leading stock exchanges.
In the Financial Information business area
SIX combines local market knowledge
with global coverage and is committed to
providing top-quality data.
Listing of securities for regulated exchange trading Operation
and monitoring of trading in equities, bonds, funds (Sponsored
Funds), exchange traded funds, exchange traded products, warrants and structured products Distribution of index and market
information
SIX operates the Terravis platform for the electronic
processing of land registry and mortgage transactions
and offers fiduciary management of registered mortgage
notes.
3
2
SIX is one of the world’s
leading providers of financial
information.
12.4
million properties can be accessed online on the Terravis portal.
Procurement, refinement and distribution
of reference data, valuation information,
market data and administrative information on financial instruments
million financial instruments are
covered by the SIX data universe.
At a glance
Trading
The core business of SIX is the
financial market infrastructure.
This includes what is known as
the Swiss value chain, which
enables securities transactions
to be processed smoothly and
efficiently.
Trading platform
Matching
CHF 42.60 per share
Order
Buyer
Buy 1,000
Order
Seller
Sell 1,000
Clearing
Central counterparty
Clearing
Collateral
Buyer
The Swiss National Bank (SNB)
rates some of the services provided as systemically important
and therefore monitors them.
Settlement
Securities settlement
System SECOM
receives 1,000
Collateral
Seller
delivers 1,000
Buyer
Seller
Payment settlement
System SIC
pays CHF 42,600
240
receives CHF 42,600
million trades were cleared.
SIX offers forward-looking solutions thanks to its many
years of experience, fully automated infrastructure and
international network.
SIX is a leading post-trade partner for
stock exchanges and other trading
platforms in Europe.
Clearing, settlement and custody in relation to securities transactions Central securities depository for
Swiss securities Managing share registers, organizing
general meetings
SIX is committed to using the latest technology and offering
innovative solutions for cashless payments with or without
cards.
SIX is the market leader in acquiring and
processing card transactions in Switzerland,
Austria and Luxembourg.
50.6
Issuing cards
Acquiring and processing card transactions
CHF
SIX operates systems for the settlement of interbank payments (SIC), electronic direct debits
and electronic billing.
420.1
billion was processed in the card business.
million transactions between
banks were settled via SIC.
3 SIX Annual Report 2013
Highlights
2013 was an excellent financial year for
SIX. All business areas achieved growth by
winning new clients or providing more
services to existing clients. The operating
result increased significantly thanks to a
high level of cost discipline and efficiency
gains. Profitability improved in all SIX business areas.
Highlights
1,582.7
Total operating income
CHF
million
15.5 EBIT margin
%
244.6
Earnings before interest and tax (EBIT)
CHF
million
210.2
Group net profit
CHF
7,985.0
million
Balance sheet total
CHF
3,777.3
million
Workforce in full-time equivalents
AA–
77.4 Equity ratio
%
Standard & Poor’s rating
Diversity, harmonization, expertise, mobility,
networking: our society is changing faster
than ever. Being able to answer tomorrow’s
questions today gives us the edge.
Inconspicuous and yet ubiquitous: SIX provides services that are of particular importance to the Swiss economy. But we have points of contact with SIX in our everyday
lives, too. Come with us to five European cities and discover the role played by SIX
both inside and outside the world of business in Zurich, Frankfurt, Geneva, Budapest
and Bern.
Geneva
Frankfurt
Zurich
Bern
Budapest
Contents
8
Foreword
10
Report on the business year
Strong result and broad-based growth
20
Business area Swiss Exchange
A lively and eventful year on the stock markets
23
Exchange Regulation
30
Business area Securities Services
Strengthening client focus
33
Business area Financial Information
Significant improvement in profitability
42
Business area Payment Services
Strong international growth
52
Corporate Responsibility
The backbone of the Swiss financial center
57
64
66
76
78
Government supervision
Risk management
Organization and competencies
Consolidated balance sheet and income statement
Locations
Alexandre Zeller and Dr. Urs Rüegsegger
“We must convince our clients
by means of top-quality services
and solutions that offer them
decisive added value.”
Dear shareholders and partners
Dear readers
2013 was a successful financial year for SIX. We achieved growth in all business areas
and increased our profitability. Operating income grew by 8.9 % to CHF 1,582.7 million, primarily in international markets for Payment Services and the clearing business.
We are delighted to report that we have also been able to retain our excellent position
in the Swiss domestic market. For example, SIX successfully defended its position as
the reference market for trading in Swiss blue-chip stocks.
The measures implemented in 2011 in order to reduce the cost base also bore fruit.
Group net profit, adjusted for the net income from the sale of the Eurex holding in the
previous year, consequently rose by a gratifying 45.5 % to CHF 210.2 million. The loss
of the Eurex stake’s contribution to profits was therefore largely compensated.
Foreword
Business performance is very satisfactory and places us in a good position to confront
the current challenges. A profound change is currently taking place in the business
models of banks – and therefore of our clients. Competition is also intensifying in the
field of financial market infrastructure: not only is there pressure on prices and margins, but new business models based on technological developments are opening up
the market to other providers.
However, times of far-reaching market change also offer opportunities that we hope
to exploit together with our clients. We have three priorities in this respect.
The first of these is client satisfaction. We aim to be the preferred partner of our clients. This means convincing them, by means of top-quality services and solutions that
offer them decisive added value. We therefore place great emphasis on developing
new and innovative products and services. This requires a high degree of expertise,
commitment and innovation. We therefore invest in developing our employees and
create an environment in which they can make full use of their specialist knowledge
and dedication.
The second priority is to increase business volumes and achieve economies of scale
as a result. First of all, we want to grow all our business areas in Europe. Here, the biggest growth opportunities are to be found in the card business. In autumn 2013 we
acquired PayLife Bank, Austria’s largest provider in the acquiring business and biggest
credit card issuer.
Our third priority is to increase efficiency and productivity, in order to maintain the
competitiveness not only of SIX but also of our clients and the Swiss financial center.
We are achieving this firstly through rigorous cost discipline and the streamlining and
harmonization of processes and platforms. Secondly, we are constantly investing in
technological developments and in the stability of our infrastructure.
SIX stands for a stable and efficient financial market infrastructure. That lies at the
heart of our mandate. In recent years we have proved that we can succeed in a difficult environment. We are therefore particularly pleased that the Swiss National Bank
has commissioned SIX to operate the trading platform for SNB money market transactions and the repo interbank market. This is a significant vote of confidence. Together
with our employees we will do all we can to ensure that our expertise and the quality
of our services continue to provide our clients with a dependable source of support in
the future.
We would like to thank our employees for all their hard work and dedication. Our special thanks go to our clients and shareholders for the trust and loyalty they demonstrate.
Alexandre Zeller
Chairman of the Board of Directors
Dr. Urs Rüegsegger
Group CEO
Strong result and
broad-based growth
2013 was an excellent financial year for SIX. All business areas increased their
operating income compared with the previous year, by winning new clients or
providing more services to existing clients. The operating result increased significantly thanks to good cost discipline and efficiency gains.
Operating income rose 8.9 % to CHF 1,582.7 million. Adjusted for the net income
of CHF 266.0 million from the sale of the Eurex holding in the previous year,
earnings before interest and tax (EBIT) increased by 38.4 % to CHF 244.6 million.
Group net profit was up 45.5 % to CHF 210.2 million. The EBIT margin was 15.5 %.
SIX significantly improved its result in the 2013 reporting
year. This was attributable firstly to increased activity on
the financial markets and an expansion in international
business for Payment Services. Secondly, the excellent
performance also resulted from aligning the service
range and organization more closely with client needs
and optimizing the cost structure. In a fiercely competitive environment with high pressure on margins, all
business areas grew in terms of revenue and improved
their earnings before interest and tax (EBIT).
Overview of key figures
Key figures in CHF m
Total operating expenses
Operating profit
Share of profit of associate
Net financial result
EBIT
Group net profit
Balance sheet total
Workforce as at 31/12 (full-time equivalents)
Ratios (in %)
Return on equity 3
Equity ratio as at 31/12 3
1
2
3
A s part of the conversion to IFRS, the previous year’s figures were adjusted for the purposes of comparison.
I ncludes proceeds of CHF 266.0 million from sale of Eurex holding.
Average equity between 31 December 2012 and 31 December 2013
10 2013
2012 1
Change
in %
1,582.7
–1,386.6
196.2
24.4
24.0
244.6
210.2
7,985.0
3,777.3
1,453.3
–1,327.7
125.6
29.7
287.4 2
442.7 2
410.4 2
7,943.5
3,554.0
8.9
4.4 56.2 –17.7
–91.7
–44.8
–48.8
0.5
6.3
9.4
77.4
19.7
81.8
–52.1
–5.4
SIX is reporting in accordance with the International Financial Reporting Standards (IFRS) for the first time. The
More details about conversion previous year’s figures have been adjusted
for the purposes of comparison.
to IFRS on page 13 bottom
Expansion of international business
SIX increased its revenues in the 2013 financial year. Operating income rose by 8.9 % to CHF 1,582.7 million.
Payment Services registered the highest growth, at
15.0 % or CHF 96.9 million, thanks to the expansion of
the international business and record sales of payment
terminals (5.1 %) and the acquisition of Austria’s PayLife
Bank GmbH (9.9 %). By acquiring PayLife Bank on
19 September 2013, SIX purchased not only the largest
Austrian provider in the acquiring business, but also
Austria’s biggest credit card issuer. SIX has
therefore
taken an important step forward in
More information about
PayLife on page 45 bottom implementing its international growth strategy.
In the Securities Services business area, growth of
6.6 % was largely due to higher deposit volumes in the
custody business and a higher number of international
clearing transactions. The increase of 4.1 % in the Swiss
Exchange business area was primarily due to the integration of Scoach Switzerland Ltd, following the ter
mination of the joint venture with Deutsche Börse AG.
Financial Information recorded most of its growth in the
reference data and customized software solutions businesses, increasing its operating income by 2.7 %.
Ongoing optimization of cost base
Thanks to the ongoing optimization of operating costs,
operating expenses rose by only 4.4 % to CHF 1,386.6
million despite higher growth-related transaction costs
and the integration of PayLife as of November 2013.
While personnel expenses inched downwards by 0.2 %,
other operating expenses rose by 10.5 %. Operating
profit climbed markedly, increasing 56.2 % to CHF 196.2
million.
Operating income per segment
in CHF m
Swiss Exchange
Securities Services
Financial Information
Payment Services
Corporate and elimination
1
Earnings before interest and tax (EBIT) come to
CHF 244.6 million. Adjusted for the net income from the
sale of Eurex in the previous year, EBIT rose by 38.4 % or
CHF 67.9 million. The EBIT margin was 15.5 %.
Group net profit for 2013 is CHF 210.2 million, compared
with CHF 410.4 million in the previous year, which represents a decline of CHF 200.2 million. Adjusted for the
net income of CHF 266.0 million from the sale of Eurex,
the increase in the Group net profit for 2013 was a plea
sing CHF 65.7 million, or 45.5 %. The loss of the contribution to profits of the Eurex stake, which was sold in
2012, was therefore largely compensated.
The return on equity fell to 9.4 % (2012: 19.7 %). With an
equity ratio of 77.4 % (81.8 %), SIX has a very solid capital base.
More rigorous client focus
In the year under review, SIX paid great attention to
strengthening its client focus. The aim is to understand
clients, their challenges and needs more thoroughly, in
order to be able to offer them high-quality products and
innovations that provide clear added value.
In 2013 the business areas implemented numerous
measures to bring themselves closer to clients and their
requirements. Furthermore, Securities Services adapted
its structure in line with the changing market conditions
and laid the foundations for a more intensive dialog with
clients.
Anteil
Betriebsertrag
pro Segment
Shaream
of operating
income
per segment
198.5
259.9
387.9
2012 1
190.7
243.9
377.8
743.6
–7.2
1,582.7
646.7
–5.7
1,453.3
2013
The net financial result amounts to CHF 24.0 million,
compared with CHF 287.4 million in the previous year.
The large profit in 2012 was primarily attributable to the
sale of the Eurex holding. Net income from the Eurex
sale amounted to CHF 266.0 million, of which CHF 95.4
million is accounted for by the adjustment to the IFRS
accounting standard.
Change
in %
4.1
6.6
2.7
15.0
27.3
8.9
A s part of the conversion to IFRS, the previous year’s figures were adjusted for the
purposes of comparison.
Swiss Exchange
12.5 %
Payment Services
47.0 %
Securities
Services 16.4 %
Financial
Information 24.5 %
At the end of the year SIX conducted a Group-wide client satisfaction survey for the first time. This revealed
opportunities for development in the areas of communication, price transparency and involving clients in the
development of innovative products, which are
More information about
all topics that are currently being addressed by
client satisfaction on
appropriate projects.
page 55
The first measure arising from this survey was the trial
introduction of top account management, starting with
two major clients. They are now looked after from a single source, irrespective of the SIX business area that
provides them with services. This approach will be extended to other clients in the future.
Centralization of IT functions
To enable all business areas to focus more closely on
clients and markets, SIX is also uniting all IT functions
under one roof in its new Global IT division. In addition,
SIX is confident that bringing its expertise together in
this way will increase flexibility and reduce project risks.
At the same time, SIX aims to reduce operating costs
sustainably by conducting a far-reaching harmonization
of its system architecture and development methods.
The Global IT division comes into operation on 1 April
2014.
Investing in infrastructure
In order to remain competitive and boost efficiency, SIX
constantly invests in its infrastructure and in streamlining
the architecture and improving the stability of its platforms and systems. It invested CHF 73.0 million in this
area in 2013.
EBIT per segment
The Securities Services business area has begun preparing to connect directly to the single, Europe-wide processing platform for securities transactions, TARGET2Securities (T2S). SIX expects the required investment to
amount to approximately CHF 30 million by 2017.
The project for the comprehensive overhaul of the IT platform of the Financial Information business area was finally halted in May because of technical problems. Value
adjustments amounting to CHF 14.3 million on intangible
assets were made in 2013. However, SIX is constantly
investing in the existing platform to safeguard its capacity and performance.
In addition to the processing platform in Switzerland, SIX
is constructing a powerful platform in Luxembourg for
issuing and processing international cards. SIX is therefore expanding its offering for the European market significantly. The first Luxembourg banks migrated to the
platform at the end of 2013.
Serving the Swiss financial center
SIX operates vital infrastructure, such as the Swiss Interbank Clearing system (SIC) and the Settlement Communication System (SECOM), on behalf of the Swiss financial
center. As a central counterparty for clearing, SIX also
has an important risk management function. The Swiss
Share
of EBIT per Ergebnis
segmentpro Segment
Anteil betriebliches
in CHF m
2013
2012 1
Change
in %
Swiss Exchange
Securities Services
Payment Services
94.9
31.5
8.2
89.6
20.4
77.8
27.8
–14.2
73.6
277.8 2
22.1
13.1
158.0
21.8
–92.7
244.6
442.7 2
–44.8
Total EBIT
In 2013 all trading segments of the Swiss Exchange business area were migrated to the X-stream INET platform,
which had been introduced for equity trading in the previous year. This powerful platform is therefore now also
available to the other trading segments.
A s part of the conversion to IFRS, the previous year’s figures were adjusted for the
2
I ncludes proceeds of CHF 266.0 million from sale of Eurex holding.
8.3 %
Swiss Exchange 38.8 %
Payment Services
36.6 %
1
12 Financial Information 3.4 %
Securities Services 12.9 %
National Bank (SNB) designates these three
facilities as systemically relevant.
“In order to remain competitive and boost
efficiency, SIX constantly invests in its infrastructure.”
The new platform for the interbank payment systems SIC
and euroSIC (SIC4) for real-time gross settlement allows
Swiss payments to be switched over to the international
SEPA formats. The development work is on schedule,
and the new generation of euroSIC will come into operation in April 2015, with the updated version of SIC following a year later.
From May 2014 SIX will also operate a trading platform
for SNB money market transactions and for the repo interbank market. The repo business is the SNB’s most
important monetary instrument for influencing the
money supply and short-term money market interest
rates.
tional growth, particularly for Payment Services. The
corporate focus is still on increasing client satisfaction
through high quality and reliability, and on innovative solutions that create added value for clients.
In 2014 both the financial sector, and SIX as a financial
infrastructure operator, will be faced with numerous
challenges on the regulatory front. SIX intends to ad
vocate for an efficient, competitive financial center at a
political and regulatory level.
Outlook: client focus and innovation
SIX is expecting the market environment to remain competitive in the current year, with continuing pressure on
margins. Nevertheless, SIX is predicting further interna-
From RRV-FINMA to IFRS
By converting to IFRS accounting standards, SIX is primarily taking into account the increasingly international
focus of its business model. The transparency of financial reporting is also being increased.
As part of the conversion to IFRS, the previous year’s
figures were adjusted for the purposes of comparison.
This results in a change in the Group net profit for 2012
of CHF 90.3 million: from CHF 320.1 million under RRVFINMA to CHF 410.4 million under IFRS.
The higher profit is mainly due to the reassessment of
the currency corrections. These were previously recognized in equity for the Eurex holding. The sale proceeds
from the Eurex holding have increased by CHF 95.4
million as a result. Personnel expenses have risen by
CHF 11.3 million as a result of the first application of
IAS 19 revised. The fact that scheduled amortization of
goodwill is no longer permitted under IFRS has reduced
depreciation and amortization by CHF 6.0 million.
Reconciliation of Group net profit 2012 (in CHF m)
2012
Group net profit under RRV-FINMA
Proceeds from sale of Eurex holding
First application of IAS 19 revised
Amortization of goodwill
Other IFRS adjustments
Group net profit under IFRS
Adjustment
Financial result
Personnel expenses
Depreciation,
amortization and
impairment
Various
320.1
95.4
–11.3
6.0
0.2
410.4
13 Diversity.
Vielfalt.
14 From planning for the future to shopping at the weekly market, never have we had so many
different options, and never has the number of alternatives been so great. Such diversity helps
us to make comparisons and allows us to see things in a new light. Where there are many
opportunities, there are also many solutions.
15 Oliver Heusser from the Bank Julius Baer is convinced that modern
exchanges will have to continue to strike out in new directions in the
future, too, in order to offer their trading partners the widest possible
variety of solutions – such as the Sponsored Funds segment.
As the first sponsor and market maker for the new
Sponsored Funds segment, Bank Julius Baer has brought
286 investment
funds
In 2013, these funds were traded
1,673 times.
to the stock exchange.
Between the segment’s launch and the end of 2013,
turnover for the exchange-traded funds came to CHF
200 million.
In a society that has such a high regard for freedom of choice, people also expect options and alternatives when
investing money. SIX has introduced the Sponsored Funds segment in response to this trend. Since March 2013,
Sponsored Funds has given investors another instrument that they can buy and sell daily on the stock exchange
and that also protects them from default risk while offering optimum diversification.
16 Corinna Bachmann knows how important it is to plan for her retirement right now. “I used to think that the third pillar
(private pension scheme) was enough for me. But my bank advisor has since explained to me that exchange-traded
investment instruments are particularly advantageous.” She is especially keen to invest sustainably.
Trading segments
Number of tradeable products
Equities 272
Bonds 1,636
ETFs* (incl. funds) 970
ETPs** 52
Sponsored funds 330
Structured products
and warrants 34,283
Turnover in CHF billion
Structured products and warrants 30
Funds & ETPs 7
ETFs 91
Bonds 164
Equities 717
In 2013, different issuers such as
financial institutions, countries and
companies raised approximately
CHF 90 billion
via SIX Swiss Exchange.
* ETF: Exchange traded
fund
**ETP: Exchange traded
product
Zurich, 4 December 2013, 1:20 pm
Oliver Heusser admires the panoramic view from
the Uetliberg over Zurich and Lake Zurich all
the way to the Alps. “It is a characteristic of our
times that we get lost in the detail,” he says.
“However, it is also important to see the whole
picture. Up here is the perfect place for that – at
least when there’s no fog, anyway.”
With its new Sponsored Funds trading segment, SIX has once again expanded the investment universe
in collaboration with its clients. For private investors, the new segment primarily brings greater diversity,
offering them even more alternatives in accordance with their investment wishes and preferences.
“Thanks to Sponsored Funds we can trade
investment funds as easily as shares.”
Oliver Heusser talks about the newest trading segment of SIX.
A huge number of different investment instruments are now traded on the
stock exchange. What advantages does
this vast range bring to the investor?
Today’s investment universe is like
nothing that has ever been offered to
investors before. There are suitable investment opportunities for every risk
profile and client segment, both private
and institutional. In addition, the stock
exchange guarantees transparent and
fair trading at all times.
This diversity has increased even more
in the past year: you have worked with
SIX to launch a new trading segment for
Sponsored Funds. What is that all about?
In 2013 we brought 250 traditional
investment funds from around 60 lead
ing providers to the stock market, covering a wide selection of asset classes,
countries, regions, sectors, themes and
strategies. This new segment allows
investors to trade traditional investment
funds at any time, exactly like shares.
What prompted you to take this step
and who benefits from it?
Traditional funds can only be bought
and sold after a time lag, and orders are
calculated using the net asset value.
However, this is not known at the time
of the order, because the exact value is
only calculated once a day. Since investment funds are now being traded on the
stock exchange and the sponsor is constantly quoting a price, investors can now
also sell and buy these funds at any
time.
Which client groups are these Sponsored Funds aimed at?
The trade in Sponsored Funds on the
Swiss stock exchange is aimed at a
whole range of client segments: private
investors, portfolio managers, indepen
dent asset managers and institutional investors. Pension funds, in particular, have
been given new investment opportunities thanks to Sponsored Funds, because
they are legally obliged to invest part of
their assets in exchange-traded instruments. However, Sponsored Funds are
attractive to all institutional investors,
since they always need a reference price
for their investments and have to ensure
liquidity.
Oliver Heusser joined Bank Julius
Baer in 2009. Since then he has
been working with Beat Auerbach
and Thomas Kägi to develop the
exchange-traded investment
fund segment.
Did the segment get off to a good
start in your view?
Naturally, it takes time to develop a
new segment like this. However, in my
opinion the launch went even better than
expected. A total of 305 different funds
are already being traded. Zürcher Kantonalbank has entered the segment as
another market maker. I’m sure that other
products will follow in the future. There
is huge potential in the funds segment.
Swiss Exchange
A lively and eventful year
on the stock markets
SIX can look back on a pleasing year on the stock markets: trading turnover rose
by 12.5 % to CHF 1,004.4 billion. The service offering was expanded in March
with the launch of a new trading segment, Sponsored Funds. The strategically
important trading in structured products was integrated into the organization
following the dissolution of Scoach, the joint venture with Deutsche Börse.
Operating income rose by 4.1 % to CHF 198.5 million, and earnings before interest and tax (EBIT) increased by 22.1 % to CHF 94.9 million.
The radical transformation of the stock market landscape in recent years poses challenges to operators of
regulated stock exchanges. Newly created, in some
cases supranational, stock exchange organizations and
newly invented alternative trading platforms such as
multilateral trading facilities (MTFs) have increased
competition between exchanges and led to fragmentation, particularly in equity trading.
Changes are taking place in the stock exchange environment at the regulatory level, too: both the Financial Market Infrastructure Act (FMIA) in Switzerland, and the revision of the Markets in Financial Instruments Directive
Key figures for the business area Swiss Exchange
Number of tradeable products
SPI market capitalization (in CHF m)
1
2
2012 1
190.7
77.8
237.9
1,004.4
892.6
12.5
34.5
37,425
1,187,543
31.5
35,222
973,071
9.3
6.3
22.0
4.1
22.1
10.2
s part of the conversion to IFRS, the previous year’s figures were adjusted for the
A
Including Scoach Switzerland Ltd
20 Funds on page 19
Share of blue-chip trading by participant location
Change
in %
198.5
94.9
262.1
2013
Operating income (in CHF m)
EBIT (in CHF m)
Workforce as at 31/12
(full-time equivalents)
Stock exchange trading volume 2
(in CHF bn)
Number of transactions 2 (in m)
(MiFID II) at the European level, are approaching their
final stages. Particular attention is being paid to derivatives trading, a large proportion of which – like bond trading – still takes place over the counter.
A new form of exchange trading
In March 2013 SIX expanded its regulated exchange
trading service by launching the Sponsored Funds segment, with Bank Julius Baer as the first sponsor. At the
end of 2013, 305 investment funds from over 60 issuers
were admitted to trading. Another sponsor, Zürcher
Kantonalbank, was added in 2013.
More about Sponsored
Total turnover (in CHF m) 1,163,953.2 = 100%
The Netherlands 1.6 %
Switzerland 28.8 %
Sweden 0.3 %
France 9.0 %
Ireland 4.6 %
Liechtenstein
0.2 %
Germany 1.4 %
United Kingdom
54.1 %
Foreign currency equities and bonds recover
In 2013 it was not just the major equity indices that
reached record highs: SIX also recorded another increase in trading activity. Overall, trading turnover was up
12.5 % compared with the previous year, to CHF 1,004.4
billion, and the number of trades rose by 9.3 % to 34.5
million.
While most other major European stock exchanges registered a drop in equity trading volumes, SIX recorded
an increase of 19.9 % to CHF 716.6 billion. The number
of trades grew by 9.8 % to 32.2 million.
SIX was able to defend its position as the reference market in the fiercely competitive business of trading Swiss
blue-chip stocks. Its average market share
overthe year was 66.0 % (2012: 67.5 %).
Equity trading turn
over increased by
Trading in bonds denominated in Swiss francs
saw a decline in activity. Trading turnover fell
to CHF 163.8 billion, corresponding to a decrease of 11.6 %. The main Swiss bond index also declined slightly. There were 506,781 trades in all, down
6.0 % on the previous year.
19.9 %.
By contrast, there was a pleasing rise in trading turnover
for foreign currency bonds. Although the number of
trades fell by 25.3 % to 18,220, trading turnover rose
71.5 % to CHF 3.0 billion.
After falling in the previous year, trading in exchange
traded funds (ETFs) also increased significantly, to end
only slightly below the record figure achieved in 2011.
Trading turnover rose 19.3 % to CHF 90.7 billion, and the
number of trades grew by 16.5 % to 931,569.
Integration of structured products trading
Trading in structured products is strategically important
for SIX and forms an important component of the business portfolio. At the end of June 2013, Scoach, the
joint venture with Deutsche Börse, was dissolved and
the former Scoach Switzerland Ltd was then integrated
into the Swiss Exchange business area as a separate
entity. The termination of the cooperation agreement
enables SIX to focus even more closely on the needs of
participants in the Swiss market for structured products
and to promote trading in a targeted manner. Listing and
connection fees were reduced as an initial measure.
Since 1 January 2014, the exchange for structured products has been operating under the name “SIX Structured Products Exchange.”
The trading turnover of the SIX Structured Products Exchange fell to CHF 30.3 billion, corresponding to a decrease of 4.9 %. The number of trades declined by 3.6 %
to 862,171.
Low level of IPOs
Once again, there were few initial public offerings in Europe in 2013, because persistently low interest rates
meant that companies could still borrow on favorable
terms. SIX facilitated one of the biggest IPOs in Europe
for the second year in succession, when Cembra Money
Bank – formerly GE Money Bank – went public. Cembra
placed shares with a total volume of CHF 1,046 million
with new investors.
The ETF segment gained a new issuer, ETF Securities,
along with 119 products. At the same time, 65 ETFs
were removed from trading, partly because of the sale
of Credit Suisse’s ETF business to BlackRock’s iShares.
At the end of the year, 940 products from 18 providers
were listed.
The Swiss Exchange business area provides stock exchange trading services in both the cash and securitized
derivatives markets. Equities, bonds, exchange traded
funds and exchange traded products as well as investment funds (Sponsored Funds), warrants and structured
products are traded on the two stock exchange trading
platforms SIX Swiss Exchange and SIX Structured Products Exchange. SIX also distributes raw market data and
index products.
In the interests of the Swiss financial center, SIX provides efficient and transparent pricing in the various
trading segments and ensures that all participants have
equal access to high liquidity.
SIX aims to defend its status as the reference market for
Swiss securities and its market share for Swiss blue-chip
stock trading, and it also intends to achieve economies
of scale through the internationalization of its services.
In the area of data and index products, SIX operates two
joint ventures: STOXX, a provider of global indices, and
Indexium, a provider of index calculation services.
Bonds totaling CHF 78.8 billion (CHF 84.8 billion) were
issued, most of them by Swiss issuers. Among the total
of 337 bonds issued (357), 126 (170) came from abroad.
In 2013, 9 foreign currency bonds were listed, which
was a significant increase on the previous year (2). This
was mainly attributable to banks and insurance companies managing their equity by issuing subordinated
bonds primarily in foreign currencies.
A total of 46,073 new warrants and structured products
were offered on SIX Structured Products Exchange,
2.3 % more than in the previous year. COSI products
(Collateral Secured Instruments) passed the CHF 3 billion mark for the first time. There was particularly high
demand for structured products with reference bonds –
their share increased to 13 % (9.8 %). The segment has
also been open to German guarantors since the end of
2013. EFG Bank became the seventh bank to provide
collateral in the COSI segment.
Anniversary year for indices
There were two anniversaries in 2013 in the area of data
and indices. It was the 25th anniversary of the SMI index, while STOXX, the sales platform for the indices calculated by SIX, celebrated its 15th birthday.
In the year under review, approximately 344,300 structured products based on indices from SIX, STOXX and
Deutsche Börse were issued, which represents a fall of
about 36 %, and trading on the Deutsche Börse derivatives exchange Eurex was also lower than in the previous year. The total capital invested in 267 ETFs on the
three companies’ indices amounted to EUR 86.8 billion
(EUR 76.1 billion).
Platform consolidation and new service offering
In order to remain competitive and boost efficiency, SIX
constantly invests in cutting-edge technology and
streamlines the system architecture it uses for stock exchange trading.
Performance of main indices
Index
SMI
SLI Swiss Leader Index PR
SMIM Price
SPI
SPI EXTRA Total Return
SXI LIFE SCIENCES Total Return
SXI Bio + M edtech Total Return
SBI AAA-BBB Total Return
22 31/12/2013
Change from
31/12/2012 in %
8,203.0
1,257.3
1,593.9
7,838.0
2,470.6
2,032.8
1,980.1
123.7
20.24
21.20
28.15
24.60
27.66
54.59
62.00
–1.28
In 2013 all trading segments were migrated to the
X-stream INET platform, which had been introduced for
equity trading in the previous year. This powerful platform is therefore available for trading and market making in the bond, ETF, investment fund and structured
products segments as well. Bringing all the trading segments together on a single platform also simplifies the
interfaces and facilitates linking via Co-Location, the
fastest connection to the stock exchange.
Sponsored Access was also introduced. This service
enables participants on SIX Swiss Exchange to connect
their clients directly to the stock exchange trading system. At the same time all orders entered are checked by
the stock exchange’s risk management system, so that
the participant (sponsor) can constantly monitor the
risks arising from its clients’ trading activity.
Outlook: further functionalities and internationalization
In 2014 SIX will intensify its efforts to make the Swiss
financial center even more attractive to securities issuers
in Switzerland and abroad. Making issuing opportunities
in the bond segment more flexible is just as important as
marketing the equity segment globally. SIX is therefore
strengthening its role as a hub for raising capital, while
also supporting the international orientation of the financial center. At the same time, it is investing in expanding
the functionality and efficiency of the trading platform.
As new rules relating to FMIA and MiFID II are implemented for the first time, 2014 will bring greater clarity
regarding the future direction of regulation in Switzerland and the European Union. While SIX already exceeds future European requirements in areas such as
active market control or safeguarding market integrity, it
will also introduce the necessary changes in the other
areas.
Exchange Regulation
Self-regulation
of the SIX exchanges
As part of the self-regulatory mandate
prescribed under the Stock Exchange
Act, the independent Exchange Regulation unit regulates stock exchange
trading and the admission of securities
together with the subsequent obligations that arise.
The Exchange Regulation unit, which is responsible for
implementing and enforcing the rules, is separated from
the operating business of SIX Swiss Exchange and SIX
Structured Products Exchange (exchange for structured
products, formerly Scoach Switzerland Ltd) and reports
directly to the Chairman of the Board of Directors of SIX.
While one team (Surveillance & Enforcement) is responsible for these duties with respect to participants and
traders, the other team (Listing & Enforcement) performs this function for issuers. The Regulatory Board is
responsible for setting regulations in this respect. Sanction decisions are announced by the Sanction Commission; depending on the content, there is a possibility of
appeal to the independent Appeal Board and / or the
Board of Arbitration. Sanction notices are issued by Exchange Regulation. The areas responsible for setting
regulations, applying regulations and passing judgment
on them have equal powers in this respect.
The new regulations on the admission to trading of investment funds in the Sponsored Funds segment came
into force on 1 February 2013. The revision of the listing
rules has been concluded, and will be implemented at
the beginning of the second quarter of 2014. The trading
regulations of SIX Swiss Exchange and SIX Structured
Products Exchange have been expanded to include the
new opportunity to participate via Sponsored Access
and the basis for the regulation of short selling.
In the admissions area, bond issues continued at a brisk
pace throughout the year. New issues of derivatives also
remained at a high level. Further improvements were
made to the efficiency of the admission process for derivatives. Finally, a large number of exchange traded
funds from different issuers were listed for the first time.
The initial public offering of Cembra Money Bank AG
took place on 30 October 2013.
Trading in 2013 was conducted in accordance with the
rules and without any serious incidents. Most of the irregularities detected during monitoring were duly resolved
by phone calls or written notifications to the participants. During the course of the year, Surveillance & Enforcement launched 74 investigations into suspected
breaches of the rules and laws. It was only necessary to
impose sanctions on transgressing participants in a few
of these cases. The results of investigations involving
suspected breaches of criminal or regulatory law were
forwarded to the relevant criminal prosecution bodies
(or since 1 May 2013 to the Office of the Attorney General) and / or FINMA; the same also applied to 67 cases
where insider knowledge was suspected to have been
misused.
The use of the penalties imposed by the SIX regulatory
bodies is defined in a specific regulation. The penalties
collected will be used for research projects or organizations working in the areas of research and education, or
for benefit funds, colloquiums, conferences, training
events or publications relating to the Swiss financial
center. At least one quarter of the penalties is allocated
for charitable purposes. The Exchange Regulation management team decides on a case-by-case basis how the
penalties should be used.
Listing applications
Equity securities
Bonds
Derivatives
2013
2012
2011
2010
119
337
46,069
121
357
45,019
139
394
52,406
137
306
41,176
23 Harmonization.
24 We can chat online about hotels and restaurants all over the world, receive useful shopping tips from Sweden
for our next trip to Italy and order green tea in Kyoto. All this has been made possible by the standardized infrastructures that constantly regulate the global flow of data in the background and allow the seamless exchange
of information across all borders.
25 Exchange trading in Europe and throughout the
world has long functioned across borders. “But
we need to harmonize what goes on behind the
scenes, the processes that keep the whole thing
going, so that they function more efficiently,”
says Jean-Michel Godeffroy of the European
Central Bank (ECB).
The ECB’s timetable for the launch of T2S is binding.
If a participant is unable to meet the agreed deadline
it will have to wait for the contingency wave.
Wave 1
Wave 2
Wave 3
06/2015
03/2016
09/2016
Wave 4
02/2017
T2S
will enable the central
securities depositories (CSDs) to
process their securities transactions
on a shared platform. In all, 24 CSDs
have already agreed to implement
T2S.
Contingency wave
05/2017
SIX
The TARGET2-Securities (T2S) infrastructure project is being coordinated by the European Central Bank.
The aim is to create a pan-European platform that allows securities transactions to be settled in central
bank money and harmonizes processes in the eurozone. T2S is to be implemented in four migration waves.
SIX is in the first wave, which begins in June 2015. The implementation will conclude in 2017.
26 Thomas Leonhard would like to sell some
Italian shares from his portfolio. Settle
ment on the delivery versus payment
principle ensures that the money and
securities are transferred simultaneously.
“Cross-border securities transactions of
this kind will be processed even more
efficiently on T2S, the single settlement
platform,” his investment advisor tells him.
Frankfurt, 23 January 2014, 6 pm
“I think that Opernplatz is the most beautiful
square in the city,” says Jean-Michel Godeffroy. The magnificent opera house was razed
to the ground in World War II. “I walk past it
on my way home, and every time I think how
wonderful it is that this splendid building has
been rebuilt and can be used for concerts and
events.”
SIX has already made significant progress in establishing itself as the gateway for
the Swiss financial community to international markets. In the context of T2S, this
means strengthening the already solid relationships it has with Europe’s banks,
broker-dealers and CSDs as well as offering clients a choice of connectivity and
value-added solutions. And to leverage its first-mover advantage.
28 “T2S is groundbreaking and offers
enormous business opportunities for
market participants.”
Jean-Michel Godeffroy about the advantages of the new platform for securities
settlement.
Why is it important for the Swiss
market infrastructure to be part of T2S
(Target2-Securities)?
T2S is the future of European settlement. Swiss capital markets are already
fairly integrated into the overall European
financial landscape. Staying out of T2S
would mean being outside one of the
most important developments for the
European post-trade infrastructure. SIX
has seen the opportunities that T2S can
bring to the Swiss capital markets and
we welcome this very much. T2S may
help to attract even more investors to
the Swiss market, since access via T2S
should be a lot easier and more costefficient.
How do you think Swiss banks will
benefit from being part of T2S Wave 1,
i.e. the first participants in T2S?
Being among the first users of T2S
could clearly be seen as a competitive
advantage, as early joiners will be best
positioned to attract international players.
In general, T2S will also bring economic
benefits through reduced settlement
costs, streamlined back-office operations
and, significantly, collateral and liquidity
savings.
Where do you see the value an international CSD (central securities depository) like SIX can bring to T2S?
The value which SIX brings to T2S
stems not only from its role as an international CSD but even more from the
fact that it brings securities to T2S
issued outside the eurozone and therefore extends the scope of securities. You
may remember that, even if T2S was
originally designed for euro settlements,
it soon evolved to provide pan-European
securities settlement in central bank
money. This clearly goes beyond the
borders of just the eurozone.
Jean-Michel Godeffroy is
Director General at the European
Central Bank (ECB) and has been
Chairman of the T2S Program
Board since May 2009.
And what do first-wave participants
contribute?
We very much appreciate the supporting role first-wave participants play.
They have supported us from the out
set. CSDs migrating later stand to benefit from from the experience of Wave-1
CSDs.
What do you see as the next trends, as
a consequence of T2S, in the post-trade
space?
T2S will make post-trade activities
more efficient and will foster harmoni
zation. It will bring a more competitive
environment with new business opportunities. It is now up to market participants to leverage the potential of T2S.
Possible trends in this respect are: consolidation, i.e. fewer CSDs and specialization of market players. But T2S brings
with it even wider business opportunities, even on a global scale, for international investors and issuers.
Securities Services
Strengthening client focus
In a fiercely competitive market, SIX once again succeeded in significantly increasing transaction volumes in clearing. In settlement, work began on establishing
a direct connection to the European TARGET2-Securities platform. The post-trade
business area also increased its alignment more closely with its clients and
markets.
Operating income rose by 6.6 % to CHF 259.9 million, and earnings before interest
and tax (EBIT) increased by 13.1 % to CHF 31.5 million.
The post-trade business continues to face strong competition and price pressure, both in Switzerland and
abroad. Since most clients in this segment are active
across international markets as well as in the domestic
market, the pressure on prices applies across all products. Regulatory requirements are also being stepped
up which have an impact across all market and product
segments.
In the year under review, SIX adapted and restructured
its post-trade business in line with the changing market
environment. The main priority was to focus more closely
on clients and markets in order to ensure that services
and products are tailored more precisely to client needs.
By doing this, SIX aims to strengthen its competitiveness in the post-trade arena. At the same time, the foundations have been laid for a more intensive dialog with
clients and a stronger culture of innovation.
This environment is leading to falling margins and higher
production costs, which have to be offset by higher volumes and lower operating costs.
Key figures for the business area Securities Services
EBIT (in CHF m)
Number of settlement transactions
(in 1,000)
Deposit volume (in CHF m)
Number of clearing transactions 2
(in 1,000)
2013
2012 1
Change
in %
259.9
31.5
378.8
243.9
27.8
438.3
6.6
13.1
–13.6
26,017
23,808
9.3
2,892,255
240,000
2,687,494
183,119
7.6
31.1
Number of transactions by origin
in m
96
72
A
2
I n the previous year, the number of trades cleared was reported as “Number of
clearing transactions.” The two sides of a trade are now reported separately.
1
30 240
220
200
180
160
140
101.6
120
100
83.4
66.8
52.0
80
38.8
60 26.2
40
20
40.6 44.6 49.6
0
2009 2010 2011
Clearing
Settlement
240.0
183.1 204.4
148.5
34.6
35.6
2012 2013
28.8 23.4
4.9 5.8
27.2 23.8 26.0
7.3 8.7 10.5
23.9 17.6
19.8 15.1 15.5
2009 2010 2011 2012 2013
Switzerland
Abroad
Expansion of clearing in a challenging environment
Clearing continued to pursue a strategy of growth and
internationalization. Two years after the extension of the
interoperability agreement, which allowed free choice
between two or more central counterparties on a trading
platform, competition between the clearing houses has
increased. Interoperability in clearing now applies to
more than half the volume of shares traded on European
stock exchanges and alternative trading platforms, including Swiss Exchange, London Stock Exchange, BATS
Chi-X and Turquoise, as well as a series of smaller multilateral trading facilities (MTFs). 2013 saw the addition of
two new MTFs, Getco Execution Services and Aquis. SIX
is the only central counterparty in Europe to offer access
to all interoperable trading platforms.
Clearing in equity trading continued to be highly competitive, which led to falling margins. Furthermore, the
number of trades on the European stock exchanges
stagnated overall in 2013. Overcapacity and strong fragmentation have resulted in a need for
of the transac- consolidation, and SIX is actively contributing to this process through the actions in clearing are from
outside Switzerland.
quisition of Oslo Clearing.
85 %
In a fiercely competitive environment, SIX further increased its share of the clearing market, boosting volume by 31 % to 240 million transactions. Well over half
this volume now comes from MTFs, and 85 % of the
transactions are from abroad (2012: 80 %).
Direct connection to T2S
Target2-Securities (T2S) is one of the Eurosystem’s
biggest infrastructure projects. The aim is to create a
pan-European platform that allows securities transactions to be processed in central bank money (the euro),
and which harmonizes cross-border settlement processes in the eurozone. Right from the start, SIX has
played an active part in the design of T2S and has represented the interests of the Swiss financial center.
At the beginning of 2013, the SIX Board of Directors
agreed that Switzerland should be connected to T2S. A
program was therefore launched to give Switzerland direct access to this platform. SIX is working closely with
the Swiss National Bank, banking associations and
Swiss banks in order to develop solutions that will allow
Swiss banks to access all T2S markets with a minimum
of additional expense.
In the first T2S wave in June 2015, SIX will become the
first central securities depository from a non-EU country
to offer its clients direct access to T2S. This solution will
enable SIX to provide the Swiss financial center with an
attractive new method of connecting to the euro capital
markets. At the same time, SIX will be able to achieve
sufficient economies of scale to keep settlement fees
low in the domestic business, too.
Custody and settlement were carefully geared towards
the European settlement platform T2S in order to ensure
the linking of the Swiss financial center and offer clients
flexible solutions for their cross-border business.
The Securities Services business area provides a range
of post-trade services that play a key role in the financial
market infrastructure. As a central counterparty (CCP)
for securities transactions, SIX assumes key risk management functions in clearing, both for the Swiss financial
center and for international exchanges and alternative
trading platforms.
In the subsequent settlement and custody process, SIX
ensures the electronic settlement and finalization of
transactions. SIX also serves the Swiss financial center
as the central securities depository for assets and documents and acts as an international securities depository
in over 60 markets.
While SIX carries out these functions primarily in the
interest of its owners and clients in Switzerland, it also
depends on international business in order to exploit
economies of scale and remain competitive in the interest of the Swiss financial center.
SIX additionally maintains share registers and special
registers for companies in Switzerland and operates a
platform for the electronic processing of land registry
and mortgage transactions (Terravis). Furthermore, SIX
offers fiduciary management of registered mortgage
notes.
Settlement transactions in Switzerland were up 2.3 %,
while cross-border transactions increased by 21.5 %
compared with the previous year.
ters, which was therefore realigned. At the end of 2013,
SIX managed 210 (202) share registers and organized
134 (132) general meetings.
Growth in deposit volumes
The custody business grew once again. On the one
hand, well-known foreign banks were joined as clients
for the settlement of Swiss and international securities
transactions. On the other, existing Swiss clients entrusted SIX with more assets in relation to international
securities transactions. Swiss deposit volumes increased to CHF 2,185 billion. At the end of the year, foreign deposit volumes stood at CHF 707 billion.
In the year under review, clients placed increasing emphasis on additional services in the areas of collateral
management, corporate actions, taxation and repo
transactions, since greater attention is being paid to differentiating and optimizing the product portfolio.
Global Fund Services faced stronger competitive pressure because of the possible merger of Citco Bank and
Clearstream, and this led to a slowdown in the inflow of
new client assets. Compared with the previous year, international fund assets under custody rose by 2.2 %
(8 %), with ETFs recording the biggest growth at 15 %.
Added value for a variety of stakeholders
In coordination with the federal government and the
cantons, SIX is working to develop the Terravis platform
for the standardization of land registry information and
electronic transactions in connection with the purchase
of real estate. Three more cantons were connected to
this information portal, so almost 3 million properties
out of around 8 million could be accessed online by the
end of the year. Some of the processes for electronic
transactions had already been rolled out. It was therefore possible to transfer the first mortgages between
credit institutions via Terravis in 2013. In the summer,
SIX launched a fiduciary management service for registered mortgage notes for banks.
The market environment for share register management
worsened because of new regulatory requirements relating to FATCA, especially in the area of special regis-
Deposit volumes
Depotvolumen
in CHF bn
3,500
3,000
2,500
2,000
1,500
2,860
759
2,847
718
2,101
2,129
2009
2010
2,892
707
2,555
653
2,687
676
1,902
2,011
2011
2012
2013
Switzerland
Abroad
2,185
1,000
500
0
32 Outlook: increasing regulation of the post-trade
industry
Regulatory requirements in the area of post-trading will
continue to present a major challenge. In 2014 it will be
vital to implement the requirements of the new Swiss
National Bank ordinance in the systemically significant
parts of the business. Regulatory requirements relating
to the European Securities and Market Authority
(ESMA), the Committee on Payment and Settlement
Systems and the International Organization of Securities
Commissions (CPSS-IOSCO) and the Foreign Account
Tax Compliance Act (FATCA) are continuing to have a
negative impact on the activities of infrastructure providers in Europe.
As well as working to give the Swiss financial center access to T2S, SIX will collaborate closely with the Swiss
National Bank to clarify how it can support the latter in
the implementation of its monetary policy. Here, SIX will
bring a technical platform for processing repo transactions into operation. This will also allow SIX to expand its
service offering in the area of collateral management.
In clearing, SIX intends to reinforce its position in the
pan-European market and enhance its range in the area
of bonds and derivatives. Last but not least, clearing will
focus on the need to meet regulatory requirements and
ensure that ESMA renews the authorization of SIX to
operate in the EU.
Significant improvement
in profitability
Thanks to the comprehensive range of reference data and valuation information
it provides, SIX achieved growth in the area of financial information. This business
area also sharpened its strategic focus.
SIX significantly improved its result in the Financial Information business area,
generating operating income of CHF 387.9 million (+2.7 %) and earnings before
interest and tax (EBIT) of CHF 8.2 million (+CHF 22.4 million).
The market for financial information is very competitive,
not least because of the continuing consolidation in the
financial sector. This is having a particularly strong impact on the Display area, which is seeing a steady decline in market volumes and margins. Increasingly, major
competitors are also crowding into the fields of securities settlement and risk management, which is making
competition in key SIX segments even fiercer.
Building on proven strengths
In this competitive market environment, SIX sharpened
its strategic focus in the area of financial information
during 2013. In the future, SIX will be doing more to
build on its proven strengths in this field. For example,
SIX is investing in the fields of reference data and valuation information in particular. The range of customized
software solutions on offer is also being expanded. In
Key figures for the business area Financial
Information
EBIT (in CHF m)
Number of financial instruments
(in m)
Number of price updates per year
(in bn)
1
2013
2012 1
Change
in %
387.9
8.2
1,166.2
377.8
–14.2
1,208.9
2.7
n/a
–3.5
12.4
11.0
12.6
930.0
771.0
20.6
view of the strategic importance of this area, SIX acquired the remaining 25 % minority interest in Rolotec
AG in Biel at the end of 2012. As developer and integrator of software solutions, Rolotec provides customized
solutions for the worldwide financial market.
Growth in strategically significant areas
SIX increased its global revenue in the financial information business by 2.7 % in 2013. The highest growth (in
local currencies) was generated in the United Kingdom,
at 8.3 %, followed by Switzerland at 6.3 % and the Be
nelux countries at 6.0 %. Revenues declined in France
(–3.1 %), the United States (–3.4 %) and Germany (–3.7 %),
but remained at the previous year’s level in Scandinavia
(0.2 %).
In 2013 SIX posted growth in the strategically important
areas of reference data and valuation information, and
for customized software solutions. Growth of 4.2 % in
the reference data business is mainly attributable to a
rise in supply volumes owing to improved data quality
and the geographical expansion of banks. Furthermore,
this area experienced greater demand for additional services in the regulatory field.
A
Revenue also increased in the field of customized software solutions (5.7 %). A new service for calculating indicative net asset values and indices was launched in
this area in 2013. The range of services offered in the
field of documents required by the reguThroughput in the market lators in connection with funds and strucdata feed was boosted by
tured products was expanded at the
same time. Revenue in the Display area
declined by 3.9 % because of persistent
pressure on prices, although some major new clients
were gained.
500 %.
Excellent supply of data for regulatory purposes
Financial institutions, in particular, are having to confront ever more numerous and complex regulatory requirements, which means they increasingly depend on
precise and comprehensive information regarding the
regulatory aspects of financial instruments.
While Swiss banks focused mainly on the agreements
on withholding tax with the United Kingdom and Austria
in 2013, this was in the Europe-wide context of the Foreign Account Tax Compliance Act (FATCA), which enters into force on 1 July 2014. The first global client for
the implementation of FATCA was gained, and test data
were made available in the market at an early stage. In
autumn 2013 SIX won the Best Data Provider for FATCA
category at the Data Management Awards in London, in
recognition of its range of FATCA-related services.
SIX also provided country-specific tax data for France
and Italy in connection with the Financial Transaction
Tax. Several contracts were concluded in 2013 in relation to meeting Solvency II reporting requirements,
which affect insurance companies, asset managers and
custodian banks in particular.
Improved processes and new products
In 2013 SIX invested primarily in improving market data
information quality and processes. Throughput in the
market data feed, for example, was boosted by 500 %.
Growth came to 7.1 % compared with the previous year,
thanks mainly to the valuation information business.
Anzahl Finanzinstrumente
Number
of financial instruments covered
Number of price updates sent (output)
in m
13
12
11
10
9
8
7
6
5
4
3
2
12.4
in bn
11.0
1,000
900
8.6
600
500
400
300
200
100
0
5.6
1
2010
2011
930
807
800
700
6.8
2009
Anzahl Kurstelegramme (Output)
2012
2013
771
630
383
2009
2010
2011
2012
2013
The number of financial instruments is growing all the time. At the end of 2013 SIX was providing data for 12.4 million (11.0 million). As trading activity picked up again on the
world’s stock markets, SIX sent 930 billion (771 billion) price updates or pieces of price information about individual financial instruments.
Building on market data time series and reference data,
SIX worked in partnership with swissQuant Group to
launch a service that enables asset managers to conduct thorough analyses and checks on the risks of investment portfolios in order to determine whether a particular investment is suitable for a client in terms of
overall risk.
SIX will also continue to monitor regulatory developments in order to be ready with new products and services as soon as they are needed, for example in
connection with Basel III or the European Market In
frastructure Regulation (EMIR).
Technical problems meant that the project to overhaul
the IT platform for Financial Information was finally
halted in May and the necessary write-downs were
taken in full in 2013. However, SIX is constantly investing in the existing platform so that its capacity and performance can continue to be guaranteed.
Outlook: focus on profitability, data quality and
innovation
Over the next few years, the Financial Information business area will be focusing on profitability, further improvements to data quality and innovation. In order to
achieve its ambitious objectives, SIX is strengthening its
client focus at all levels.
The Financial Information business area specializes in
the procurement, processing and distribution of international financial information. SIX therefore provides its
clients with the necessary tools for the settlement of
financial transactions and the implementation of investment decisions or the risk management of investment
positions. Banks and asset managers are the principal
users of this financial information.
As a leading global supplier of financial information
with offices in 23 countries, SIX combines local market knowledge with global data provision. As the official
numbering agency for Switzerland and the Principality
of Liechtenstein, SIX also assigns securities numbers.
The Financial Information business area also includes
the Group companies Rolotec (software solutions) in
Biel and EuroPerformance (fund data) in France.
The main focus is on reference data and information
used for valuing financial investments. However, SIX
also delivers price information in real time. On the basis
of its range of reference and market data, SIX also offers
standardized display products and solutions tailored to
specific client requirements.
35 Knowledge.
36 In the 21st century, productivity and growth are crucially dependent on knowledge.
Knowledge is now our most important resource. The acquisition of this constantly
changing commodity has become a decisive success factor and a never-ending task –
for each individual, and for companies and countries.
37 In 2013 SIX issued
930 billion
price updates on financial instruments.
SIX sent
6,466,601
tax notifications
for the calculation of withholding tax in 2013.
Raphaël Pont, of Geneva private
bank Lombard Odier, is convinced
that information required in order
to comply with regulatory and tax
provisions will be crucial for asset
managers in the future.
In the area of master data, SIX
processes up to
1,000,000
notifications
daily, on matters such as stock splits,
coupon payouts and capital measures.
Knowledge is a valuable resource in asset management, too. SIX operates a database which covers millions of
securities and is unrivaled throughout the world in terms of depth of information. Financial institutions make use
of master data from SIX for securities management purposes. In this way, SIX helps asset managers to comply
with regulatory requirements and evaluate investment risks.
38 regulatory
world
The
is becoming increasingly
complex. Financial institutions have to
provide more and more information about
investments.
MiFID
Solvency II UCITS
Key Investor Information Documents (KIIDs)
EU Financial Transaction Tax
FIDLEG
Reputational Risk
Packaged Retail Investment Products (PRIPs)
Portfolio Risk
Assessment
Produktinformationsblätter (PIB)
Final Withholding Tax
Basel II
EU Savings Tax
Whether he’s at home, on
the tram or in a café, André
Bavoux wants to be kept
informed about his investments at all times. It’s been
ages since he simply looked
in the newspaper. “I check
prices even when I’m on the
move, using my smartphone,” he explains.
US Withholding Tax
SEC Rule
22c-2
EU Interest Taxation
FATCA
Geneva, 17 February 2014, 4 pm
“I come to the Parc des Eaux-Vives
when I need to get away from things
for a while,” explains Raphaël Pont. He
takes his dog for a walk in the park
where he used to play with his children
when they were small. “The park is
both a place of retreat and a source of
strength to me,” he says.
Fast, accurate information is indispensable as the pace of the
markets continuously accelerates. Thanks to its specialist skills
in procuring, preparing and distributing financial information
worldwide and combining this data with intelligent services, SIX
is set to retain its competitive edge on the international stage in
the future.
“Top-class financial information is the alpha
and omega of portfolio management.”
Raphaël Pont talks about the value of top-quality information for asset management.
As the number of financial instruments
keeps increasing, the amount of data
available about these instruments is also
growing. What types of data are important for Lombard Odier, and how does
the bank filter out the relevant information?
At the moment, valuation information
and reference data are particularly
important to us. Good communication
between front and back office is required
in order to filter the huge quantity of
data. And, of course, it is also vital to
have a supplier who can provide the
data quickly and absolutely reliably. I
would say that the quality of the data
essentially depends on the quality of the
supplier.
What is important in terms of using
the data provided?
In addition to top-class data, a rocksteady infrastructure is vital. Over the
past ten years we have always been able
to rely one hundred percent on the availability of the SIX products and services
we use. Furthermore, the error rate
should be as small as possible – and at
SIX it is extremely low. It is this com
bination of data quality and availability
that makes the SIX offering unique.
What advantages does Lombard Odier
derive from the systematic supply of fi
nancial information?
The high quality of the information
supplied sets off a kind of domino effect.
It ensures that the reports we prepare
for our clients, and the recommendations
we make, are of equally high quality.
And it makes life much easier for our
asset managers because it leaves them
free to concentrate on their own tasks.
Raphaël Pont is Global Head of
Market Data at Lombard Odier,
the private bank in Geneva. He
is responsible for managing and
monitoring contracts with over
200 companies that supply the
bank with data and IT services.
In your view, what kind of information
will become even more important in the
future?
Over-the-counter trading is growing
very rapidly at present. We therefore
need more information and prices for
these products. In addition, taxation,
compliance and risk management will
become increasingly important areas for
reference data. Here, too, we need re
liable information.
Payment Services
Strong international growth
In the card business, SIX continued to expand its international business. The
acquisition of PayLife Bank in Austria substantially increased the market share of
SIX in Europe, putting the company in a good position to focus on tapping the
target markets in central and Eastern Europe.
Operating income rose by 15 % to CHF 743.6 million, mainly because of the
consolidation of PayLife. Organic growth, primarily in the international acquiring
business, was 5.1 %. Earnings before interest and tax (EBIT) stood at CHF 89.6
million, up 21.8 % on the previous year.
In Europe, three-quarters of transactions are still being
settled by means of cash or checks, but cashless payment with cards is rapidly catching up. Cash payments
are increasingly being replaced by card payments in
Central and Eastern Europe in particular. Alternative
payment methods are gradually reaching market-
readiness thanks to improved Internet connections and
the wider availability of smartphones and tablets.
Both retailers and payment solution providers face the
challenge of creating a positive shopping experience for
their customers across all channels. They need their
payment solutions to be reliable, fast, easy, secure and
affordable, so that they play a useful role in the value
chain. What ultimately counts for the consumer is how
secure and convenient they find a means of payment,
and whether they feel that it provides added value.
Key figures for the business area Payment Services
Transactions processed by origin
EBIT (in CHF m)
Acquiring turnover (in CHF m)
Number of card transactions (in m)
Number of payment transactions
(in m)
Number of payment cards (in m)
1
2013
2012 1
Change
in %
743.6
646.7
15.0
89.6
1,319.5
73.6
975.3
21.8
35.3
50,648.9
2,980.5
485.9
42,044.5
2,640.5
471.8
20.5
12.9
3.0
25.1
22.3
12.7
A
Verarbeitete Transaktionsarten nach Herkunft
Interbank payments
(SIC and euroSIC)
12.3 %
Direct debits
and electronic
invoices 1.7 %
Transactions
for issuers
of debit
and bank cards
35.6 %
Payments with
credit, debit and
prepaid cards
42.2 %
Switzerland
44.0 %
Luxembourg
1.4 %
Rest
18.5 %
42 Merchant transactions
like Saferpay, Integra, Topas etc.
8.2 %
Austria
44.6 %
Luxembourg
6.9 %
Austria
36.0 %
Rest
0.9 %
Switzerland
47.6%
The European market for payment transactions is highly
fragmented. In addition to the major international card
systems such as Visa and MasterCard, there are many
national debit card systems. These are constantly being
joined by new methods of payment over the Internet
and via mobile devices.
All competitors in the payment transactions market are
striving to achieve economies of scale and this is forcing
down margins, particularly for processing but also for
acquiring card-based payments. Additional cost pressure is being created as a result of increasing regulation
and standardization in connection with the Single Euro
Payments Area (SEPA). All these factors will ultimately
lead to further consolidation in the sector.
Strong international growth in the card business
SIX is seeking to increase business volumes in Europe in
order to maintain its competitive edge in the longer
term. The acquisition of PayLife Bank GmbH in autumn
2013 has put SIX in a good position to continue
More information about expanding its specific range of services for banks
in this area, too.
PayLife on page 45
Organic growth also continued abroad. SIX again won
major clients in the acquiring business, especially in Europe. Agreements with international chains enabled SIX
to strengthen its position in the retailing, car hire and
luxury hotel segments.
Credit and debit card transaction turnover increased by
23.9 % overall to stand at CHF 56.2 billion. The number
of transactions from abroad doubled to 292.3 million
(2012: 142.7 million); they now account for 43.6 % (27.2 %)
of the total acquiring volume.
In Switzerland, debit and credit card transaction turn
over rose by 3 % to CHF 34.6 billion, and the number of
transactions increased to 378.4 million (360.5 million).
Strong growth in Switzerland was once again recorded
by the Chinese card Union Pay: the transaction turnover
climbed more than 40 % to CHF 841.7 million.
Contactless payment gains momentum in Switzerland
In 2013 the two biggest Swiss retailers decided to install
contactless payment options and therefore replaced
their existing terminals; contactless devices also became more widespread in the public transport system.
A number of small and medium-sized companies were
also equipped with the new terminals and now offer
their customers the new experience of contactless payment as standard. A total of 22,148 payment terminals
were sold (15,987).
Another record for card processing
SIX also wants to generate more volume on its card processing platforms through international growth. In addition to the processing platform in Switzerland, SIX is
constructing a powerful platform in Luxembourg for issuing and processing international cards. The first three
Luxembourg banks migrated to the new processing
platform at the end of 2013.
SIX covers the entire value chain for electronic payments, from issuing cards to acquiring at point-of-sale
and processing card transactions.
In the domestic markets of Switzerland, Liechtenstein,
Luxembourg and Austria, SIX is market leader in the acquiring business. SIX is one of the top five providers in
the growth markets of Germany, Poland and Hungary.
In the Europe-wide cross-border business, SIX is the
leading provider serving large international retail chains,
luxury goods companies and four- and five-star hotels.
SIX aims to become a leading provider in the pan-
European payment business. It is achieving growth organically through its own sales force and through sales
partners such as banks and technology companies. Inorganic growth is also a strategic priority, in order to
realize economies of scale.
In addition to demonstrating its efficiency, high-quality
service, proximity to clients, stable systems and international orientation, SIX is particularly keen to establish
itself as a leading technology partner for its clients, by
means of constant innovation with new payment methods or value-added services such as dynamic currency
conversion, tax-free shopping and client loyalty programs.
Under the supervision of the Swiss National Bank, SIX
also operates the SIC interbank payment system for payments in Swiss francs and, on behalf of Swiss financial
institutions, the euroSIC interbank payment system for
payments in euros. Additional services include the LSV
direct debit procedure and the network for processing
electronic invoices.
In the card issuing segment, SIX processed 25.1 million
credit, debit and other payment cards (22.3 million) by
the end of the year. This growth is primarily attributable
to new clients from Belgium and Luxembourg and clients of PayLife Bank. The latter also contributed 773,682
prepaid cards.
In total, SIX processed 2.98 billion card transactions in
2013, which was 12.9 % more than in the previous year.
Most of the transactions originate from Swiss, Austrian
and Luxembourg banks, and from the company’s own
acquiring business and competitors in the acquiring
segment. Additionally, a SEPA-compatible processing
infrastructure was set up for the Bancontact/Mister
Cash debit card system in Belgium, and this will boost
transaction volumes further.
On the busiest shopping day of the year, 23
December 2013, the previous year’s record
of
the acquiring trans- was beaten once again. On that date SIX processed over 13 million transactions throughactions come from
outside Switzerland. out Europe.
43.6 %
Security for card terminals and clients
In the card business, security and the protection of cardholder data is a top priority for all concerned. As a provider of payment terminals and developer of payment
software, SIX ensures that its machines are equipped
with the latest security technology and meet international security standards.
Thanks to targeted measures and the updating of the
payment terminal infrastructure and ATMs, the number
of skimming cases declined significantly and far fewer
Maestro cards were locked as a precautionary measure
(– 56 %). In other countries, too, fraudulent withdrawals
using Swiss Maestro cards declined by 38 %. Here, SIX
works with card issuers to offer the opportunity to set
daily limits for cash withdrawals outside Europe or to
lock the cards in entire regions.
Above all, however, clients of SIX are also required to
comply with the relevant security standards and provisions, and to certify that they have done so. In an annually recurring process, SIX ensures that its clients are
informed of the applicable security requirements and
that they undergo the necessary Payment Card Industry
Data Security Standard (PCI DSS) certification process.
Growth in SEPA payments
Ensuring that bank payment transactions operate
smoothly contributes to the stability of the financial system. It is crucial to the Swiss financial center and for the
implementation of monetary policy, and is therefore important to the economy as a whole. The Swiss National
Bank provides the Swiss financial institutions with Swiss
franc liquidity via the SIC interbank payment system,
and in this way steers short-term interest rates in the
domestic money market. The euroSIC system offers the
Swiss financial institutions various ways of making euro
payments to financial institutions in Europe.
In the year under review, SIC and euroSIC processed a
total of 426.4 million transactions (+2.5 %). At the end of
2013, 365 financial institutions were connected to SIC
and 190 to euroSIC, of which 111 and 20, respectively,
were outside Switzerland.
Transaction turnover with credit and debit cards
Transaction processing in the card and payment
transfer business
in CHF bn
in m
80
70
60
50
40
30
20
10
0
3,600
3,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
56.1
40.8
45.3
5.5
2.3
35.0
2.2
31.1
32.8
37.7
42.0
50.6
2009
2010
2011
2012
2013
33.4
3.1
3.3
Retail
ATM
The figure includes the transaction turnover of credit card transactions processed in acquiring
in Switzerland and abroad.
44 3,466
2,858
3,112
2,362
1,907
2009
2010
2011
2012
2013
The figure contains the processed transactions from the acquiring and issuing processing
of the card business as well as the processed transactions in the payment transfer business
(SIC, euroSIC, LSV and Paynet).
The forthcoming abolition of national payment schemes
in the eurozone by September 2014 and their replacement with the standard SEPA scheme has also led to a
marked increase in SEPA transactions in Switzerland. In
the year under review, euroSIC processed 2.8 million
SEPA transfers (+20.1 %) with a volume of EUR 30 billion
(+15.1 %). At the end of 2013, 162 Swiss and Liechtenstein banks were connected to the SEPA transfer
scheme of the European Payments Council, and 133 of
these were using the Swiss payment route via euroSIC.
Cetrel SA, Luxembourg, that it acquired in 2008, and
integrate PayLife Bank.
Innovation is also a priority for SIX. SIX will work with
clients to develop forward-looking solutions that unite
new technologies and alternative payment methods in
the area of mobile payments and peer-to-peer payments
(P2P) in Switzerland. Finally, SIX will provide a new solution for processing cash withdrawals, which will enable
Swiss banks to handle ATM transactions even more efficiently.
The new platform for SIC and euroSIC (SIC 4) for real
time gross settlement (RTGS) allows Swiss payments to
be switched over to the SEPA formats (ISO 20022). The
development work is on schedule, and the new generation of euroSIC will come into operation in April 2015,
with the latest version of SIC following a year later.
SIX processes domestic and cross-border direct debits
in Swiss francs and euros on behalf of the Swiss banks.
In addition, SIX enables invoices to be paid via e-banking and e-bills to be processed via a special network.
With an average of 10,000 new customers
joining each month, a total of 774,000 e-bankSwiss and
ing users had registered for e-billing at yearLiechtenstein banks
end 2013. In autumn 2013 the Swiss banks dewere connected to
cided to promote e-billing and to combine
the SEPA transfer
direct debits and electronic billing in a single
scheme at the end
of 2013.
system from 2016 onwards.
162
Outlook: focus on internationalization and innovation
SIX will systematically pursue its strategy of organic and
inorganic growth in focus markets over the next few
years. To this end, SIX will increase to 100 % the stake in
Interbank-Clearing-Transaktionen
Interbank clearing transactions
PayLife Bank GmbH
SIC in m1
500
450
400 382.0
350
4.5
300
250
200
150
100
50
0
2009
SIC
1
euroSIC in m
6.4
402.5 5.5
394.7
410.2
5.9
420.1
4.9
2010
2011
2012
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
2013
PayLife is the leading acquirer in Austria with a transaction turnover of EUR 15.8 billion, 310.3 million transactions and 85,000 terminals, including 67,250 PayLife
point-of-sale terminals. PayLife has issued 1.5 million
credit cards, which makes it a market leader in this area,
too. PayLife employs approximately 330 staff in Vienna
and also has a small branch in Slovenia.
PayLife has been a client of SIX for card transaction processing since 2005. Since 2011, all PayLife transactions
in Austria have been processed using SIX systems in
Switzerland.
euroSIC
I ncluding the sight deposit account transfers of the Swiss National Bank
45 Mobility.
46 Mobile technologies influence not only business and work across the globe, but also the way we live. Coffee,
lunch, phone calls: we have long been doing several things at once while out and about. We don’t want to
waste time, even when it comes to making payments. There seems to be no stopping the trend towards daily
life without cash.
47 Katalin Sinkovics of the Three Corners Hotel Art
dreams of a cashless world, and “of solutions
that make paying even faster and simpler, and
that everybody benefits from. I am sure we will
see less and less cash in the future.”
Credit card and debit card turnover
in CHF bn
35
30
Switzerland
25
20
15
10
How the Swiss pay abroad
Cash 46 %
Credit cards 40 %
Debit cards 12 %
Other 2 %
5
0
2007
2008
Debit cards
Source: SNB, ECB
Source: Gfk
When it comes to payment transactions, mobility means one thing above all: acceleration. SIX ensures that service providers in the different sectors are furnished with
payment solutions that offer them and their customers the utmost security, respond
to diverse regional and global requirements and, most importantly, cater to the
growing demand for fast, secure and convenient payment solutions.
48 Hungary
2009
2010
2011
Credit cards
Designer Kristóf Fórizs is a keen exhibition-goer.
He uses the SZÉP card to pay for his entrance
into museums.
SZÉP card
The
replaces the former holiday vouchers
and some luncheon vouchers. Employers transfer part of their employees’
salaries to their individual SZÉP card
accounts.
From an acupuncture treatment or
a visit to the zoo or opera through
to a physiotherapy session, many
Hungarians use the SZÉP card to
pay for virtually everything they
can in the area of accommodation,
catering and leisure activities.
Budapest, 10 January 2014, 4 pm
Katalin Sinkovics loves the Liberty Bridge that connects
Szent Gellért square in Buda with the Small Boulevard in
Pest and is one of the nine bridges over the Danube in the
Hungarian capital. “I like bridges. They connect parts of
cities, not to mention people. In this respect, this bridge
also reminds me a little of the Eiffel Tower in Paris,” she
enthuses.
Mobility poses new challenges for cashless payment transactions, as it requires
solutions that take local conditions into account. While SIX makes it possible for its
clients to accept all international credit cards, it also offers them solutions for debit
cards and local payment cards such as the SZÉP card in Hungary.
50 “Our guests can pay their bills rapidly
and conveniently by card.”
Katalin Sinkovics explains how guests pay in her hotel.
You are responsible for the Three
Corners Hotel Art in Budapest. Where do
your guests come from?
Most of our guests come from Scandinavia, Italy and other Western European
countries.
How important is paying by card in
your hotel?
Hardly any of our guests pay in cash,
with most of them paying their bill by
card. We have two card terminals,
thereby leaving it up to guests to decide
which currency they prefer to use.
How important is it for your guests to
be able to pay in their own currency?
It is naturally very convenient for our
many guests from abroad to be able to
pay their bills in their own currency. This
service represents genuine added value
for our two hotels.
What status do credit cards have in
Hungary?
Hungary adopted Western European
standards very early on. Cashless pay
ment is widespread and becoming ever
more popular, especially now that the
terminals use increasingly rapid Internet
connections. People like paying this way
as it is simple, secure and fast.
Katalin Sinkovics is responsible for
controlling at the Three Corners
Hotel Art in Budapest. She does
not simply look after the financial
side of things, but also oversees
day-to-day business.
The three-star Three Corners
Hotel Art is located in the center
of Pest’s old city, on the eastern
banks of the Danube.
What is special about the SZÉP card,
which enjoys such popularity in Hungary?
In Hungary some employees receive
SZÉP cards as a fringe benefit from their
employer. They play an important role in
Hungarian tourism as they are only valid
here. People can use these cards to pay
for hotel accommodation, meals in restaurants or cultural events.
Does your hotel offer people the opportunity to pay by SZÉP card?
Yes, our Hungarian guests have been
able to pay with this card at the SIX terminals since 2013. This is a real asset,
and we will be making an extra effort to
let people know that we offer this ser
vice in order to attract more local guests.
The backbone of the
Swiss financial center
As the infrastructure provider to the Swiss financial center, in addition to serving
a large international client base, SIX regards ensuring the availability of its systems
as its top priority. Its corporate strategy focuses on efficiency and growth, and is
geared towards long-term success and maintaining the competitiveness of the
Swiss financial center.
SIX fulfills two key functions for the financial center.
Firstly, SIX ensures that the financial market infrastructure, from regulated exchange trading and the settlement of securities transactions through to interbank
payments, always operates smoothly and securely.
Secondly, in its role as reference market for approximately 35,000 securities and as a central counterparty
for clearing equity transactions, SIX ensures transparent
pricing and minimizes the counterparty risk for securities transactions. The financial information it supplies
worldwide also allows investment risk to be managed
comprehensively and efficiently and enables financial
institutions to comply with regulatory provisions when
making investment transactions.
As the market leader for card-based and electronic payments, SIX ensures the smooth flow of payment transactions each day, not only in Switzerland but also in
many European countries.
Remaining competitive
The central role played by SIX means that retaining a
strong and internationally competitive Swiss financial
center, for which it advocates at a political and regulatory level, is greatly in its interests.
52 Since the financial crisis there has been a steady increase in regulatory proposals at home and abroad. The
main focus is on tax matters, as well as on transparency
and market stability. New regulations such as the Markets in Financial Instruments Directive (MiFID II), the European Market Infrastructure Regulation (EMIR) and the
Central Securities Depository Regulation (CSDR), all of
which impose stricter requirements for EU market access on service providers from non-member states, present a particular challenge to the Swiss financial center.
A precondition of market access is that Switzerland’s
regulations must be equivalent to the EU rules, which
means that Swiss financial market legislation needs to
be amended. The Federal Department of Finance (FDF)
is therefore working on two draft bills that are important
for the financial sector: the Federal Financial Services
Act (FFSA) and the Financial Market Infrastructure Act
(FMIA). The purpose of the latter is to amend the existing regulations on financial market infrastructure and
unite them in a single act. Since the FMIA regulates
trading platforms as well as post-trade infrastructures,
and also enacts the rules of market conduct, it is of particular significance to SIX.
SIX participated in drafting the bill, which was submitted for consultation at the end of December 2013, and
will also be involved in the consultation.
“We depend on having a
competitive financial center.”
Group CEO Urs Rüegsegger talks about the role played by SIX in the Swiss financial center.
In 2013 the Swiss Financial Market Supervisory Authority (FINMA) placed SIX in
its highest monitoring category, alongside systemically important major banks.
What does this mean for SIX?
From a supervisory point of view
this is a logical step that underlines
the central role SIX plays in the
Swiss financial center and the Swiss
economy. The majority of the se
curities and payment transactions
executed in Switzerland are processed using infrastructure operated by SIX. A disruption lasting
any significant length of time would
have serious consequences for
Switzerland as both a financial and
industrial center.
Since the impact of the new rating
has yet to be seen, we are stepping
up the exchange of information
with FINMA so that we can discuss
concrete requirements and mea
sures with the supervisory authority during the course of 2014.
SIX also participated in political debates
in 2013, for example in connection with
the two popular initiatives aimed at limiting managers’ salaries. Why?
Switzerland is a very businessfriendly and liberal country. Numerous foreign companies are located
here, and some of them are listed
here, too. They create employment
and pay taxes. We want this situation to continue, so we must avoid
harming Switzerland’s chances
in the competition to be one of the
best international business locations. In the run-up to the referendums on “excessive salaries” and
“1:12” (fair pay), SIX therefore point
ed out the problematic aspects and
possible negative consequences
of accepting these initiatives and
took a clear stance. SIX is directly
affected, not only as an infrastructure service provider for participants
in the financial center, but also as
an independent company – for
example if fewer firms decide to
apply for listing in Switzerland.
The financial center is also coming under
particular pressure from abroad. Switzer
land is about to be hit by a veritable
avalanche of regulations in the next few
years. How will this affect SIX?
In the EU, regulations are increasingly aimed at harmonizing market
access, which is accompanied by
a tendency to try to exclude nonmember states. In order to survive,
the Swiss financial center needs
unrestricted access to foreign
markets – especially the EU – be
cause of its pronounced international orientation. This means that
Switzerland must ensure its regulation of financial center participants
essentially complies with EU rules:
in other words, that equivalence is
achieved.
SIX is directly affected in that the
regulation of stock exchanges,
derivatives trading and securities
settlement, in particular, is being
aligned with EU standards. The adjustments are being made within
the framework of the forthcoming
Financial Market Infrastructure Act.
Safeguarding long-term access to
the EU markets is of central importance to SIX, such as in clearing,
where over 80% of transactions
originate from European stock exchanges and trading platforms. SIX
therefore supports the Financial
Market Infrastructure Act in prin
ciple.
What topics is SIX working on internally?
In the next few years, SIX will concentrate on becoming more closely
integrated as a company. We have
achieved strong growth abroad in
recent years, both organically and
through corporate acquisitions. We
shall shortly be integrating the employees of Oslo Clearing, PayLife in
Austria, Cetrel in Luxembourg and
also those of the former joint ven
ture Scoach into SIX. But SIX is
also integrating more closely in
other ways: during 2014 we are
taking IT functions away from the
business areas and bringing them
all together in a central organization, which will have a number of
advantages. We are also introducing
top account management, so that
we can meet the needs of our big
gest clients more effectively thanks
to improved internal coordination
and develop new, tailored solutions
for them.
What priorities is SIX setting for the next
few years?
The main emphasis will continue to
be placed on our core mandate, in
other words operating the Swiss financial market infrastructure. We
aim to boost the competitiveness
of the Swiss financial center not
only through economies of scale,
but increasingly through innovation, too.
In addition, we intend to go on investing in staff development and
trying to recruit more younger employees, increase the number of
women in top management and
achieve greater international diversity among our staff.
“In the next few years, SIX will concentrate
on becoming more closely integrated as a
company.”
In 2013 SIX took part in the consultation on
the ordinance against excessive compensation in listed companies. Even before the referendum, SIX had used campaigns and interviews to
point out the possible negative consequences of accepting this initiative. SIX also made media statements
before the referendum on the 1:12 (fair pay) initiative.
In view of the numerous challenges facing the Swiss financial center, SIX regards it as very important that it
should contribute its expertise to the legislative process
as actively as possible in hearings, consultations and
working groups. SIX therefore maintains regular contact
with relevant industry associations, the authorities and
members of parliament.
SIX is also represented in various international industry
associations. At the end of November, for example,
Christian Katz, CEO Swiss Exchange, was elected President of the Federation of European Securities Exchanges (FESE) in Brussels for three years. FESE represents the 41 regulated exchanges in 30 European
countries and participates actively in European regulatory proposals.
Investing in employees
In order to be able to provide services with the efficiency, growth and innovation to which it aspires, SIX
relies on competent, motivated staff. The company
seeks to create a working environment that offers scope
for development and inspires people to deliver their best
performance.
The results of the employee survey conducted in 2012
and of exit interviews show that when employees leave
SIX during their first four years with the company, this is
mainly because of a lack of career prospects. In 2013
SIX therefore invested specifically in staff development
once again, and linked the range of tools available for
this purpose more closely to day-to-day working practices and management. For example, particular attention was paid to identifying and discussing individual
development measures for all employees as part of the
annual target-setting interviews. In the autumn, all levels of management attended workshops on employee
development, at which the career
model introduced in 2012 was re More information about
fined further.
employees on page 56
Over the next few years, SIX intends to take suitable
steps to meet the needs of younger employees more effectively, increase the proportion of women in management positions and generally forge ahead with creating
a new high-performance culture.
In autumn 2013 the Group Executive Board approved
plans for a company health management scheme. Longterm absence rates have risen in recent years, and SIX
also exceeds the benchmark for short-term absences.
The scheme will cover all kinds of measures, from prevention and treatment to the reintegration of employees, external psychosocial advice and the sports and
leisure activities offered by SIX. The post of Health Manager has therefore been created.
Reinforcing client relationships
Some 140 financial institutions are the owners and primary users of SIX services. Companies worldwide in the
hotel industry, catering, the media and retailing also belong to the SIX client base. SIX regularly conducts surveys in relevant client segments so that it can tailor its
services to the varying needs of its clients.
Reporting on corporate responsibility
When reporting on corporate responsibility, SIX applies
the standards set down in the Global Reporting Initiative
(GRI), which is recognized as the world leader in this
area. Since 2013, SIX has been an organizational stakeholder of this not-for-profit organization.
GRI guidelines do not simply require the disclosure of
information about the company itself. Companies are
also asked to provide details of how they deal with
their social and environmental responsibilities. The SIX
54 corporate responsibility report focuses on the company’s commitment to the Swiss financial center, its treatment of employees, its dialog with clients and its compliance with laws and the rules
More information about coron information security. SIX proporate responsibility at SIX
vides information on its environis available on the website
mental impact on the website.
www.six-group.com/cr
In 2013 the first Group-wide survey of SIX owners was
conducted. Respondents said they were happy with
their cooperation with SIX employees, and expressed
confidence in the reliability and stability of the infrastructure. They saw the pricing of the services provided
as the main area for improvement. They also wanted to
be more proactively involved in ongoing product development, and to see greater emphasis placed on their
requirements.
The first measure arising from this survey was the trial
introduction of top account management in the autumn,
starting with two of the biggest SIX clients. SIX wants to
use this new, cross-divisional, coordinated approach to
look after clients in a more harmonized way, solve problems more efficiently and work with clients as a strategic
partner when developing new products and services.
SIX will use the results of this trial to refine the concept,
with the aim of applying it to other major clients.
Surveys were also conducted in individual business areas, and measures were defined on the basis of the previous year’s surveys. In 2012 the Swiss Exchange business area had carried out a comprehensive survey of its
participants, issuers and other clients. A number of
measures were defined on the basis of the useful feedback received. For example, the website for issuers was
completely redesigned and communication with clients
was optimized. These steps are designed to ensure that
SIX continues to work closely with these clients, who
were already very happy with the partnership.
In the Securities Services business area, SIX relies on
the findings of the annual survey of banks conducted by
“Global Custodian” magazine. Thanks to the measures
implemented on the basis of the previous year’s results
as part of the strategic realignment, SIX received very
good scores in an international comparison with other
major central depositories. SIX achieved a top position
again, especially in areas where it had lost ground
slightly in the previous year.
Data quality was repeatedly mentioned in the regular client surveys conducted by Financial Information. In 2013
SIX therefore interviewed selected clients in order to ask
them more about this topic. On the basis of the findings,
measures were defined in the areas of data standards
and derivatives, for example, with the aim of making significant improvements.
In the Payment Services business area, SIX also carried
out qualitative surveys with major retail companies and
banks for the first time in 2013. In general, clients from
both segments were very satisfied, especially as regards the reliability and security of the products and
technologies. The measures introduced as a result included improving communication with, and support for,
clients in the event of disruptions and problems, and
consulting them more closely in connection with innovations and market trends.
Compliance and protecting client data
For SIX and all its employees, it goes without saying that
all applicable laws and internal guidelines and directives
must be complied with. The Code of Compliance describes the legal framework and rules that all employees
are required to observe and uphold. Group directives
specify the duties of all SIX employees in detail.
Correct conduct in relation to competition is of fundamental importance. An internal directive on this topic
was issued during the year under review. All management staff were required to complete an e-learning
course on the topic of competition law for consolidation
purposes. During the year under review, the required
training courses on money laundering were conducted
in the business areas subject to anti-money laundering
legislation in Switzerland or Luxembourg.
Employees per
business
area
Mitarbeitende
nach
Bereichen
Corporate Functions 7.4%
IT & Logistics 9.8 %
Payment Services
34.9 %
Swiss Exchange 6.9 %
Securities
Services 10.0 %
30.9 %
SIX places a great deal of emphasis on the protection of
data and information, which it ensures partly by means
of physical security measures, in particular in the data
processing center. SIX also takes the utmost care to ensure that data, information and business documents are
handled correctly by employees. The company
More Information on prohas issued a number of directives containing
tection of data on page 44
specific rules of conduct on this topic and has made various web-based training courses (both compulsory and
optional) and specialist events available to its employees. In 2013 a campaign was run in Switzerland to increase employee awareness on the topic of information
security.
Staff structure
The number of people employed abroad rose by 26 %
owing to the acquisition of PayLife Bank GmbH and PayLife Services GmbH. In IT & Logistics, 15 jobs were cut
as a result of cost optimization, while 60 jobs were lost
in Securities Services in connection with the realignment of that business area. However, gross staff turn
over fell by 21 % because more jobs had been cut in the
previous year.
Number of employees
Full-time equivalents Switzerland
Full-time equivalents abroad
Total full-time equivalents (FTEs)
Employees Switzerland
Employees abroad
Total employees (HC)
Personnel structure Switzerland (HC)
Men
Women
At employee level
At management level including
senior management
Proportion of women in management
(%) 1
Attrition and absences Switzerland
Attrition rate (%) 1, 2
Absence rate due to illness
(days/ FTE)
Absence rate due to accidents
(days/FTE)
Training and ongoing education
Switzerland 3
Average time spent on training and
ongoing education (days/HC) 1
Commercial and IT trainees, total
In the 2013 financial year SIX made targeted investments
in staff development. A total of 1,397 employees attended internal seminars, which was an increase of
36 % on the previous year. The average time per employee spent on training increased by 13 %.
Corporate
Functions
IT & Logistics
Swiss
Exchange
Securities
Services
Financial
Information
Payment
Services
31/12/2013
31/12/2012
Change
in %
279.5
–
279.5
300
–
300
371.2
–
371.2
379
–
379
262.1
–
262.1
282
–
282
378.8
–
378.8
398
–
398
410.7
755.5
1,166.2
431
773
1,204
623.0
696.5
1,319.5
658
752
1,410
2,325.3
1,452.0
3,777.3
2,448
1,525
3,973
2,400.1
1,153.9
3,554.0
2,518
1,181
3,699
–3
26
6
–3
29
7
196
104
135
165
352
27
234
145
198
84
153
129
271
127
237
161
329
102
251
180
465
193
400
258
1,811
637
1,410
1,038
1,872
646
1,490
1,028
–3
1
–5
1
16
16
0
14.6
4.7
12.0
7.3
8.9
6.1
16.9
7.0
8.8
6.2
6.4
7.4
10.8
6.6
13.8
7.1
–21
–7
0.4
1.1
0.1
0.7
0.8
0.5
0.6
0.5
20
0.69
0.82
0.67
1.17
1.50
0.73
0.94
0.83
13
48
46
4
Weighted average based on the number of employees in Switzerland.
2
G ross fluctuation: includes all departures as a result of employment being terminated, either by SIX or by employees.
3
O nly includes courses that are part of the standard training offered by SIX.
1
and monitoring
SIX operates systemically important
infrastructures for the Swiss financial
center. Certain areas are therefore
subject to supervision and monitoring
by the Swiss Financial Market Super
visory Authority (FINMA) and the Swiss
National Bank (SNB).
The SNB supervises Switzerland’s systemically important payment and securities settlement systems as well
as the systemically important central counterparties.
Such systems can generate or spread a systemic crisis,
which can in turn lead to severe credit and liquidity
problems for financial intermediaries and even jeopar
dize the stability of the financial system as a whole.
SIX and the legal units which operate the systems
deemed to be systemically important by the SNB (the
interbank payment system SIC, securities settlement
system SECOM and central counterparty SIX x-clear
Ltd) must meet the minimum requirements set out
More information
in the National Bank Ordinance.
on www.snb.ch
On behalf of the SNB, SIX provides services that are essential for payment settlement in the SIC system. As
SIC’s system manager, the SNB maintains giro accounts
for the participating financial institutions that form the
system’s core. Collaboration between the SNB and SIX
on operation, maintenance and development is regulated by contracts.
Security requirements aimed at effectively reducing
technical and operational risks in SIC are based on international IT standards. The organizational and transparency requirements follow widely accepted corporate
governance guidelines. The minimum requirements, observance of which is monitored by the SNB, are aimed
primarily at reducing systemic risk. They are applied to
areas such as organization, public information, contracts, controlling and the limitation of credit / liquidity
risks and means of payment among others. However,
security requirements aimed at reducing and controlling
technical and operational risks, protecting information
and providing safe access to systems are also included.
All in all, systemically important Swiss infrastructures
operated by SIX are characterized by high security and
efficiency. The architecture of these infrastructures
helps to minimize the risks typically associated with the
clearing and the settlement of payments and securities
transactions. As integrated applications, they provide
efficient, highly automated transaction settlement,
while minimizing the related systemic risks.
The legal units of SIX that operate in the areas of securities trading and securities settlement are subject to direct
institutional supervision by FINMA. The legal entities SIX
SIS Ltd and SIX x-clear Ltd operate as licensed banks
and are therefore required to comply with Swiss banking regulations. This includes capital adequacy rules as
well as provisions governing guarantors and internal organization. Changes to the articles of association or organizational and business regulations must be approved
by FINMA in advance.
57 Networking.
58 Hardly anything has had as big an impact on our everyday lives in recent years as digital networking. With
breathtaking speed a virtual world of connections has sprung up, offering us almost inexhaustible opportunities.
The refrigerator in the kitchen can now send a signal to our smartphones to tell us we are running out of milk
and eggs, and it can even suggest a recipe for dinner at the same time.
59 Karin Hofer was surprised to learn that her salary is not – as she had previously believed –
transferred directly from her employer’s bank, but is actually sent via SIC. “The main thing is
that the money gets to my account on time each month,” she laughs.
SIC
SIX operates the
interbank payment system on
behalf of, and under the supervision of, the Swiss National
Bank.
Bank B
Bank A
Payment
instruction
Payment
notification
SIC account
The very latest infrastructure allows payments between banks to be settled quickly and securely on a grossed-up
basis and in real time. Up to 42 million transactions a month pass through the SIC interbank payment system.
Apart from providing the IT infrastructure, SIX is also responsible for technical monitoring of operations, software
development, maintenance and business management.
60 “The social costs caused by payment transactions are too high,” says Andy Sturm of the Swiss National Bank. “The
aim should be to reduce these costs.” In fact, studies show that banks, infrastructure providers, retailers, companies
and private individuals spend approximately 1 % of the gross domestic product on providing payment services.
Million transactions
CHF 360 billion
– that’s how much
money passes through SIC on its busiest days. This is the equivalent
of over half of Switzerland’s annual gross domestic product.
The number of interbank
payment transactions has
more than doubled in the
last ten years.
420
193
2003
2013
Source: SNB
Bern, 28 January 2014, 12 noon
Andy Sturm appreciates the district surrounding the Federal Palace. In summer he loves
looking at the view from his office. “When the
fountains at the Bundesplatz are on, I can hear
children laughing as they jump through the
water while I’m sitting at my desk.” The water
feature has 26 fountains to symbolize all the
cantons of Switzerland.
The Swiss National Bank (SNB) uses repurchase agreements (repos) to manage the money market. A
bank sells securities to the SNB to increase its liquidity temporarily. At the same time, the bank undertakes to buy the securities back later, and pays interest. From May 2014, SIX is providing a new trading
platform for processing this kind of transaction between the SNB and banks.
62 “Stable infrastructures such as SIC keep
interbank payments flowing.”
Andy Sturm explains why the SIX interbank payment system is important to
the whole of Switzerland.
What role does the SIC interbank
payment system play in the Swiss econ
omy?
The participating financial institutions
use SIC to settle their large payments
and some of their mass payments. The
latter account for the bulk of the transaction volume. Companies pay their
suppliers or make salary payments to
their employees, for example, while
private clients use SIC to pay their rent,
their health insurance premiums or their
childcare fees.
How would Swiss citizens know if SIC
stopped functioning?
Much of the economy would be affected if SIC were to break down. Within
just a few hours, the banks would be unable to process their (often time-critical)
large payments, so they would poten
tially experience liquidity shortages. The
banks’ customers would also rapidly
become aware of any such breakdown.
And finally, of course, the activities of the
Swiss National Bank (SNB) itself would
start to be hampered, since it uses SIC
to implement monetary policy.
Why doesn’t the SNB itself operate
SIC?
Outsourcing the operation of the pay
ment settlement platform to a privatesector company allows the SNB to fulfill
its legal mandate more efficiently. The
rights and obligations of SIX and the
SNB are contractually regulated, and the
SNB has extensive opportunities to influence how SIC is set up.
Andy Sturm and his team at the
Swiss National Bank are respon
sible for monitoring the systemically important financial market
infrastructures.
In the future, SIX will operate another
important infrastructure for the SNB: a
platform for the settlement of repo transactions. How important is this platform
to the SNB?
Repo transactions are a key monetary
policy instrument of the SNB. Firstly, they
allow very flexible and accurate management of the liquidity in the banking
system, and secondly, the repo rate is a
highly effective way of influencing conditions on the interbank money market.
This platform is therefore of central importance to the implementation of monetary policy.
How does the SNB ensure that the
system never breaks down?
In order to avoid breakdowns, the
SNB imposes strict business continuity
requirements on significant infrastructures such as SIC, and conducts regular
checks to see that these are being complied with.
Risk management
Risk management is a crucial component of SIX Group’s business, with a focus
on ensuring a reliable and stable financial infrastructure.
The internal oversight lies with the Board of Directors,
and externally with the Swiss financial authority FINMA.
Two legal entities of SIX, SIX x-clear Ltd and SIX SIS Ltd,
have bank licenses and are regulated as such.
market and on SIX’s reputation. Reports on the Group
risk situation are submitted periodically to both the
Group Executive Board and the Board of Directors’ Risk
Committee.
The guiding principles that govern risk management at
SIX are set out in its Risk Policy, which defines organizational arrangements and responsibilities and lays down
the principles for dealing with the various types of risk
faced by the businesses. It was revised in 2012 in order
to accommodate an integral risk management framework for the entire Group.
The Board of Directors is responsible for defining SIX’s
risk tolerance. On the operational side, risk tolerance is
defined on the basis of required service level availability
in terms of level of security and confidentiality, as well
as spare capacities held. SIX x-clear Ltd and SIX SIS Ltd,
which are part of SIX Securities Services Ltd (a subholding company), are licensed Swiss banks. The separate Annual Report published by SIX Securities Services
Ltd addresses capital adequacy requirements under Basel III and reports on its specific risk management activities.
The Risk Policy is approved by the Board of Directors,
which also delegates risk management tasks. The overall supervision of risk management and monitoring is
delegated to the Board of Directors’ Risk Committee.
Organization and reporting
Risk management falls within the responsibilities of the
members of the Group Executive Board, and the business lines are supported by specialist Group functions:
Corporate Development in the case of strategic risks,
the Corporate Security Officer for security risks, the
Compliance Officer and the Finance & Services division
itself. Risk monitoring at the Group level is undertaken
independently of line management responsibilities and
is performed by the Chief Risk Officer.
Within the various businesses, risks are managed and
controlled effectively as part of the operations. Individual risks are dealt with in accordance with the potential
financial loss as well as their potential impact on the
64 Types of risk
In addition to strategic, business, operational, financial
market and reputational risks, SIX keeps separate track
of compliance and project risks, as well as the risks attached to financial reporting. Credit, market price and
liquidity risks are recorded under financial market risks.
Strategic risks
Given their long-term impacts, strategic risks are of key
importance to SIX. Corporate Development draws up
strategic options and reviews Group strategy in collaboration with the individual business areas. This is revised
annually and approved by the Board of Directors.
Risk management
Compliance risks
Compliance with the relevant rules and regulations is
part of everyday working life at SIX, with the applicable
principles being laid down in internal directives. Compliance at SIX has been set up in accordance with Swiss
Financial Market Supervisory Authority (FINMA) Circular 2008 / 24. Legal & Compliance (L&C) centrally monitors adherence to the relevant rules and regulations, and
performs reviews on internal systems and processes in
individual business areas and operational units. Litigation cases and related risks are also dealt with by L&C.
Staff awareness of compliance problems is raised
through both basic and further training on a regular basis.
Operational risks
Particular attention is paid to operational risks, which to
a large extent are IT-related. The stability and integrity of
systems and processes are managed through a comprehensive program of risk prevention and risk monitoring,
which is checked periodically by business area and divisional management. Group level results are reported by
the Chief Risk Officer to the Group Executive Board’s
Risk Committee. Risk management issues are subject to
discussion and decision at the Group Executive Board
level. In emergencies or crises, operations are secured
by SIX business continuity management, which is
closely coordinated with business continuity planning
for the Swiss financial sector as a whole.
Financial market risks
SIX exposure to financial market risks arises mostly
from liquidity needs, counterparty exposure and market
prices. A full description and quantification following
IFRS guidelines is presented in
More on financial market
the SIX Financial Report.
risks in SIX Financial Statements 2013 on page 53
Reputational risks
In order to protect the company’s good reputation,
measures are taken across the entire SIX organization in
order to ensure professionalism, integrity and reliability
as well as compliance in all business activities. Although
reputational risks are not measured quantitatively, the
communications department closely monitors coverage
of SIX in the press and media.
Integral risk management
In 2013, SIX started the implementation of an integral
risk management framework, which includes an Enterprise Risk Management system. The framework is based
on the company-wide evaluation and monitoring of risks
and the respective controls, including individual quantification and aggregation at the Group level. It is scheduled to be completed in 2014.
Project risks
Projects are monitored continuously by project managers. Project risks which are large in scale, cross-divisional
or relevant to SIX strategy are monitored directly by the
Group Executive Board.
Financial reporting risks
Financial reporting risks and the corresponding risk
mitigation action are discussed at the regular Board of
Directors’ Risk Committee meetings. Risks and internal
controls regarding consolidated financial reporting are
regularly assessed by the management and Board of Directors. SIX Securities Services Ltd fulfills the requirements for the partial disclosure of the eligible and required equity stipulated in FINMA Circular 2008 / 22. The
required notes are included in the consolidated financial
statements of SIX Securities Services Ltd, available on
the Internet and from SIX Securities Services Ltd.
Management structure and
shareholders
SIX Group Ltd (SIX) is an unlisted public limited company domiciled in Zurich. SIX operates in four business
areas via six divisions.
Shareholders and equity structure
All previous owners of the merger partners are represented among the shareholders. The shares are widely
distributed, i.e. no one owner or bank cate The individual participations
gory has an absolute majority. All shareholdof SIX are presented in the
ers are bound by a shareholders’ agreement.
financial report on page 67
The transfer of shares must be approved by the Board of
Directors. Subject to Art. 685b para. 4 Swiss Code of
Obligations (CO), approval may be refused for significant reasons as mentioned in the articles of association.
A resolution by the general meeting, backed by at least
two thirds of the represented votes and an absolute majority of the par value of represented shares, is required
along with a statutory quorum pursuant to Art. 704 para.
1 CO in order to:
1.ease or lift the transfer restriction on registered shares;
2.convert registered shares into bearer shares;
3.dissolve the corporation through liquidation;
4.modify this Article.
SIX Group Ltd’s total equity amounts to CHF 19,521,905
and is divided into 19,521,905 registered shares with a
par value of CHF 1 each. Of this amount, 607,864 (3.1 %)
are owned by SIX (treasury shares). The transfer of registered shares is restricted by the articles of association.
Organization (as at 31/12/2013)
Board of Directors
Alexandre Zeller Chairman
Group CEO
Exchange
Regulation
Dr. Urs Rüegsegger
Rodolfo Straub
Swiss Exchange
Securities
Services
Financial
Information
Payment
Services
IT & Logistics
Finance &
Services
Dr. Christian Katz
Thomas Zeeb
Marcel Bättig a.i.
Niklaus Santschi
Robert Bornträger
Dr. Stefan Mäder
Board of Directors
Regional Chief Executive Officer, Global Private Banking, Europe, Middle East and Africa, HSBC, Geneva.
On 31 December 2013, the Board of Directors consisted
of ten non-executive members. At the General Meeting
of Shareholders on 29 May 2013, Alexandre Zeller was
elected as the new Chairman of the Board of Directors
of SIX. He succeeded Prof. Dr. Peter Gomez, who had
resigned after seven years as Chairman.
Christophe Gabriel stepped down from the Board of
Directors as of 31 December 2013. Eduardo Leemann and
Dr. Pierin Vincenz will not be standing for re-election
when their term of office expires on 16 May 2014. The
Board of Directors proposes Dr. Patrik Gisel (Raiffeisen
Group, representing the Raiffeisen banks, regional banks
and savings banks), Lorenz von Habsburg Lothringen
(Bank Gutzwiller & Cie, representing the private bankers
and private banks) and Søren Mose (Saxo Bank (Switzerland) Ltd, representing the foreign banks) for election to
the Board of Directors.
Alexandre Zeller, Chairman (1961)
Swiss citizen, member of the Board since 29 May 2013,
elected until 2014. Education: Graduate degree in Business Administration (HEC), University of Lausanne and
Advanced Management Program, Harvard Business
School, Boston.
Career
1984 –1987 International Operational Audit, Nestlé SA,
Vevey. 1987 –1999 Various roles with Credit Suisse, Zurich. 1999 – 2002 Member of the Executive Board (2002
Chief Executive Officer) Private Banking Switzerland,
Credit Suisse, Zurich. 2002 – 2008 Chief Executive Officer,
Banque Cantonale Vaudoise, Lausanne. 2008 – 2012
Chief Executive Officer, HSBC Private Bank (Suisse) SA &
Country Manager Switzerland HSBC, Geneva. 2010 – 2012
Equity structure
Further activities and mandates
−Member of the Board of Directors, Maus Frères SA,
Geneva
−Member of the Board of Directors, Kudelski S.A.,
Cheseaux-sur-Lausanne
−Member of the Board, Schweizer Berghilfe, Adliswil
−Member of the Foundation Board, Study Center
Gerzensee, Foundation of Swiss National Bank,
Gerzensee
−Member of the Foundation Board, Swiss Finance
Institute, Zurich
Dr. Romeo Lacher**, Vice Chairman (1960)
Swiss citizen, member of the Board since 1 January
2008, elected until 2014. Education: Graduate degree in
Business Administration, PhD in Economics, University
of St. Gallen; Advanced Management Program, Harvard
Business School, Boston.
Career
After studies: three years of professional experience in
the insurance business. Credit Suisse, Zurich: 1990 –1993
Head of Marketing Promotion. 1994 –1997 Head of Prod
uct Development / Product Management Retail Banking.
1997 – 2000 Head of Retail Customer Business. 2000 – 2003
Head of Product Management Banking Products and Internet Banking. 2004 – 2006 Member of the Executive
Board and Head of Operations. 2006 – 2011 Member of
the Private Banking Management Committee / Global
Head of Private Banking Operations. Since 1 January
2012 Head of Private Banking Western Europe / Member of the Private Banking and Wealth Management
Committee.
Shareholder structure
Aktionärsstruktur
in %
30.1
19.7
13.9
9.0
8.1
Treasury shares
Regional and
Raiffeisen banks
Private banks
Cantonal banks
Commercial and
investment banks
3.1
1.2
Others
14.9
Foreign banks
as at 31/12/2013
CHF 19,521,905.00
–
–
19,521,905
3768228
Big banks
Ordinary share capital
Authorized share capital
Conditional share capital
Registered shares (par value CHF 1)
Security number
35
30
25
20
15
10
5
0
−Member of the Board of Directors, Swisscard AECS
AG, Horgen
−Member of the Board of Directors, Bank-now AG,
Horgen
Dr. Sabine Keller-Busse*** (1965)
Swiss citizen, member of the Board since 18 June 2012,
elected until 2014. Education: Graduate degree in Business Administration, PhD in Economics, University of
St. Gallen.
Christophe Gabriel*** (1961)
Swiss citizen, member of the Board from 27 October
2009 until 31 December 2013. Education: Graduate degree in Business Management and Business Information Technology, University of Zurich.
Career
1989 –1995 Managing Partner, Elektro Busse GmbH &
Co. KG, Gifhorn, Germany. 1995 –2008 Senior Partner,
McKinsey & Company, Zurich. 2008 –2010 Managing
Director Private Clients Region Zurich, Credit Suisse, Zurich. Since 2010 Chief Operating Officer, UBS Switzerland, Group Managing Director, UBS AG, Zurich.
Career
1983 –1984 Various internships in Sweden, France and
Venezuela. 1985 –1991 Andersen Consulting in Zurich
and Geneva, various projects in the finance sector, in
particular with SOFFEX. 1991 –1994 Compagnie de Services et de Conseils, various projects in the finance sector, Geneva. Lombard Odier & Cie, Geneva: 1994 –1996
Head of Development of Financial Applications.
1996 –1998 Head of Financial Controlling. 1998 –2001
Head of Operations. Since 2001 Head of IT and Operations, member of the Executive Board.
Dr. Philipp Halbherr* (1952)
Swiss citizen, member of the Board since 20 September
2008, elected until 2014. Education: Graduate degree
and PhD in Economics, University of Zurich.
Career
1983 –1987 National research program No. 9 “Economic
development,” assistant to head of program. 1984 –1987
Lecturer, HWV, Zurich. 1977 –2003 Various lecturing assignments, University of Zurich. 1987 –1989 Research
grant from Swiss National Science Foundation, Stanford
Uni
versity, USA. Zürcher Kantonalbank, Zurich:
1995 –2000 Head of Central Risk Controlling. 1991 –2002
Head of Economics. 1999 –2004 Head of Treasury.
2002 –2005 Head of Financial Management. 2005 –2008
Head of the Finance business unit. Since July 2008
Head of Institutionals & Multinationals (formerly Investment Banking). Since 2005 Member of the Managing
Board.
−Foundation Board, Swiss Finance Institute, Zurich
−Advisory Board, Department of Banking and Finance,
University of Zurich
68 Dr. Barbara Kessler* (1953)
Swiss citizen, member of the Board since 26 May 2011,
elected until 2014. Education: Graduate degree in Economics, University of St. Gallen; PhD in Social and Economic Sciences, Vienna University of Economics and
Business; federally certified Swiss tax expert.
Career
1979 –1993 Tax advisor, partner of the tax department,
Arthur Andersen AG, Zurich. 1993 –2002 Head of the tax
department, Zurich Financial Services, Zurich. From
January 2003 Head of Tax and Insurance, Novartis International AG, Basel.
−Member of the Board of Directors, Sandoz AG, Basel,
and additional group companies of Novartis International AG
−Member of the Board, Tax Commission of the
International Chamber of Commerce (ICC), Paris
−Co-Chair of the WIN Steering Committee, a mentoring program offered by Novartis and the University of
Basel
−Chairwoman, Foundation Board for the Holz & Korb
Foundation, a workshop for the disabled, Zurich
Eduardo Leemann** (1956)
2008, elected until 2014. Education: Graduate of Economics and Business Administration, HWV Zurich; Advanced Executive Program, J.L. Kellogg Graduate School
of Management, Northwestern University, Chicago.
Career
1981 –1985 Private Banking South and Central America,
Bank Julius Baer, Zurich. 1985 –1990 Responsible for the
setup of Private Banking, Bank Julius Baer, New York.
1990 –1992 Deputy Head of Private Banking Department (worldwide private banking operations with direct
responsibility for the western hemisphere, Switzerland
and comprehensive marketing), Bank Julius Baer, Zurich. 1992 –1997 Member of the Management Board
and Head of Private Banking, Goldman, Sachs & Co, Zurich. From 1997 CEO AIG Investments, AIG Private Bank
(today Falcon Private Bank), Zurich, later Chairman of
the Board, AIG Private Bank, Senior Managing Director
and Head of AIG Global Wealth Management, AIG Investments, Zurich. In September 2008, Eduardo Lee
mann returned to the Executive Board of AIG Private
Bank and he is now CEO of Falcon Private Bank Ltd,
Zurich.
−Chairman, Apen AG, Zug
−Member of the Board of Directors, Association of
Foreign Banks in Switzerland, Zurich
−Member of the Supervisory Board, Signa Prime
Selection AG, Vienna
Herbert J. Scheidt*** (1951)
German and Swiss citizen, member of the Board since 1
January 2008, elected until 2014. Education: MBA, University of New York; BA and MA in Economics, University of Sussex.
Career
1982 –1986 Various management positions at Deutsche
Bank AG, Frankfurt and Essen. 1986 –1990 Head of Euro
bond Capital Market Team, Vice President, Deutsche
Bank Capital Corporation, New York. 1990 –1993 Head of
Corporate Finance, Director, Deutsche Bank Italy, Milan.
1993 –1996 Head of Distribution, Managing Director,
Deutsche Bank AG, Private Banking Division, Frankfurt.
1996 –2000 Head of Private Banking Europe and Middle
East and Deputy CEO, Deutsche Bank (Suisse) S.A., Geneva. 2000 Head of Private Banking International,
Deutsche Bank Group, Geneva, and member of the Group
Executive Committee, Wealth Management, Frankfurt.
2001 CEO, Deutsche Bank (Suisse) S.A., Geneva. From
2002 to May 2011 CEO, Vontobel Group, Zurich. Since
May 2011 Chairman of the Board of Directors of Bank
Vontobel AG and Vontobel Holding AG, Zurich.
−Member of the Board of Directors, Swiss Bankers
Association, Basel
−Member of the Board of Directors, Association of
Swiss Commercial and Investment Banks (VHV),
Zurich
−Vice Chairman of the Board of Directors, Hero AG,
Lenzburg
−Member of the Board of Directors, Helvetia Holding
AG, St. Gallen
Dr. Pierin Vincenz* (1956)
2008, elected until 2014. Education: Graduate degree in
of St. Gallen.
Career
1979 –1982 Swiss Trust Company, St. Gallen. 1986 –1990
Global Treasury, GD, Swiss Bank Corporation, Zurich.
Vice Director, Swiss Bank Corporation Services L.P.,
Chicago. 1991 –1996 Vice President and Treasurer,
Hunter Douglas, Lucern. 1996 –1999 Member of the
Executive Board, Head of Finance, Raiffeisen Group,
St. Gallen. Since 1999 Head of the Executive Board,
Raiffeisen Group, St. Gallen.
−Member of the Board of Directors, Notenstein
Privatbank AG, St. Gallen
−Chairman of the Board of Directors, Aduno Holding
AG, Opfikon
– Chairman of the Board of Directors, Pfandbriefbank
Schweizerischer Hypothekarinstitute (mortgage bond
bank of the Swiss mortgage institutions), Zurich
– Vice Chairman of the Board of Directors, Leonteq
Securities Ltd, Zurich
−Member of the Board of Directors’ Committee, Swiss
Bankers Association, Basel
−Member of the Board of Directors, Helvetia Holding
Ltd, St. Gallen
−Chairman of the Association of Sponsors of the
Swiss Institute of Banking and Finance, University of
St. Gallen
−Chairman of the Board of Directors, Plozza Vini SA,
Brusio
−Member of the Foundation Board, Swiss Finance
Institute, Zurich
−Steering Committee member, Unico Banking Group,
Brussels
−Vice Chairman of the Board of Directors, Raiffeisen
Anniversary Foundation, St. Gallen
−Member of the Board of Directors, PflegekinderAktion Schweiz (organization for foster children,
Switzerland)
−Member of the Foundation Board, Speranza (support
and advancement of occupational integration and
training in Switzerland), Aarau
−Member of the Foundation Board, Foundation for
Clinical Cancer Research of Eastern Switzerland,
St. Gallen
−Member of the Foundation Board, Pro Kloster
Disentis (foundation for Disentis Abbey)
−Member of the Foundation Board, Bleu Ciel
(humanitarian foundation for children’s aid in
Rwanda)
−Chairman, Plan B Association (development of
products and services that promote responsible
attitudes toward money and consumption)
−Chairman, Medas Foundation, Eastern Switzerland
Hermann Wirz** (1947)
Swiss citizen, member of the Board since 27 October
2009, elected until 2014. Education: Business Administration, Program for Executive Development, IMD, Lau
sanne.
Career
1968 –1969 Financial and Management Accounting,
Elektrizitätswerk Luzern (Lucern power plant), Switzer
land. 1969 –1971 Management Accounting, Shell Switzer
land. 1972 Internship Factory Administration, Nestlé UK
and Spain. 1973 –1979 Head of Factory Administration,
Industrial Accounting and Budgeting, Nestlé Venezuela.
1980 –1984 Manager Operational Control Latin America,
Nestec Switzerland. 1984 –1989 Director Finance & Con
trol, Nestlé Peru. 1989 –1995 Director Finance & Control,
Nestlé Venezuela. 1995 –2000 Executive Vice President
and CFO, Nestlé Mexico. Since 2001 Chief Accounting
Officer, Nestlé SA, Switzerland.
−Member of the Board of Directors, Intercona Re Ltd,
Châtel-St-Denis
−Member of the Board of Directors, Nestlé Capital
Advisers SA, Vevey
−Member of the Board of Directors, Nestlé Health
Science SA, Lutry
Internal organization and
competency rules
As the company’s highest governing body, the Board of
Directors is responsible for supervising the Group Executive Board. The tasks and competencies of the Board
of Directors and its committees and of the Group Executive Board as corporate bodies of SIX are defined in the
articles of association, the rules of organization and the
competency rules.
Tasks of the Board of Directors are generally carried out
by the responsible committee. The Board of Directors
has four committees: the Audit Committee, the Nomination & Compensation Committee, the Risk Committee
and the Strategy Committee. Insofar as the committees
are assigned discretionary powers by the competency
rules, the duties of the Board of Directors are limited to
supervision of the committees.
The committees regularly report to the Board of Directors, generally at each meeting. The committees of the
Board of Directors also accept reports pertaining to
their sphere of responsibility from the Group Executive
Board and supervise the relevant operating business, in
particular with regard to compliance with the articles of
association, regulations and directives. Meetings of the
Board of Directors and committees generally last between two hours and half a day. The Chairman of the
Board of Directors is invited to attend all committee
meetings as a guest. The Group CEO and Group CFO are
present at all meetings of the Board of Directors.
The chairs of the committees decide whether further
members of the Group Executive Board or other management staff are to be summoned, depending on the
agenda. If deemed necessary, representatives of the external auditors participate in the Board of Directors’ discussion of their reports.
In the year under review, the Board of Directors convened on nine occasions, one of which was a one-day
strategy seminar. The chair of the Board of Directors, or
the chairs of the committees, define the agendas of
meetings. The deliberations and resolutions are recorded
in the form of minutes. The minutes of the committees
are sent to all members of the Board of Directors. The
chairs of the committees also deliver a verbal report on
important events and resolutions at every Board of Directors meeting.
* Member of the Audit Committee
** Member of the Nomination & Compensation Committee
*** Member of the Risk Committee
Audit Committee (AC)
The AC consists of three to four non-executive members of the Board of Directors. The activities of the AC
are stipulated by the law, FINMA Circular 2008 / 24, the
articles of association and the rules of organization (including the competency rules).
The AC assumes tasks related to accounting and financial reporting, the internal controlling system, the external auditors and the Internal Audit department.
AC meetings are attended by the Group CEO, the Group
CFO and representatives of the internal and external auditors. Five meetings were held in the year under review.
Nomination & Compensation Committee (NCC)
The NCC consists of three to four non-executive members of the Board of Directors. The activities of the NCC
are stipulated by the law, the articles of association and
the rules of organization (including the competency
rules).
The NCC prepares the groundwork for all decisions on
important personnel and related organizational issues at
the Group Executive Board and senior management
level, including all issues pertaining to remuneration, for
submission to the Board of Directors. NCC meetings are
attended by the Group CEO and the Head Human Resources. Six meetings were held in the year under review.
Risk Committee (RC)
The RC consists of three to four non-executive members
of the Board of Directors. The activities of the RC are
stipulated by the law, the articles of association and the
rules of organization (including the competency rules).
Directors in carrying out its legal supervisory and controlling tasks and executes the audit tasks assigned to it.
Internal Audit has an unrestricted right of audit within
SIX Group Ltd and all Group companies and has the right
to inspect all business documents at any time. It coordinates its activities with the external auditors and those
responsible for Compliance and Risk Controlling.
Informational and supervisory instruments with regard to the Group Executive Board
SIX has a fully developed management information system (MIS) which supports the Board of Directors in performing its supervisory duties and monitoring the powers
assigned to the Group Executive Board. A comprehensive
interim statement containing budget and year-on-year
comparisons is submitted each quarter to the Board of
Directors.
The Chairman of the Board of Directors receives the
minutes of the Group Executive Board meetings for inspection.
Risk management and compliance
The Board of Directors is informed about the risk situation on a regular basis. A detailed description of risk
management at SIX may be found in the risk management section on page 64.
The Group also has an internal control system (ICS) consisting of regulations, internal directives and corresponding measures, which serve to ensure that business
operations are conducted properly. A corresponding
compliance program also ensures that statutory and
regulatory requirements are met. The half-yearly report
on compliance activities is approved by the Risk Committee.
The RC assumes the duties of the Board of Directors in
the framework of SIX’s risk management in accordance
with the risk policy. In addition, the RC has responsibilities related to the Securities Services business area. RC
meetings are attended by the Group CEO, the Group
CFO and the Group CRO. Four meetings were held in the
year under review.
Internal Audit
Internal Audit reports directly to the Audit Committee in
functional terms and the Chairman of the Board of Directors in administrative terms. It supports the Board of
Group Executive Board
On 31 December 2013, the SIX Group Executive Board
consisted of seven members.
Thomas Gross, CEO Division Financial Information, left
SIX as of the beginning of June 2013. Marcel Bättig has
taken over as acting head of this business area.
Dr. Urs Rüegsegger (1962)
Swiss citizen, Group CEO. Education: Graduate degree in
of St. Gallen.
Career
Swiss Re, Zurich: 1989 –1993 Most recently Head of Finance and Services at subsidiary group Audatex AG.
St. Galler Kantonalbank: 1993 –1997 Head of Accounting, Controlling and Risk Management. 1997– 2000
Head of Projets & Organization, member of Group Management. 2000 –2001 Head of the Service Center.
2001– 2008 CEO. Since 2008 Group CEO, SIX Group Ltd,
Zurich.
72 Further activities and mandates
−Chairman of the Board of Directors, Cetrel SA,
Luxembourg
−Chairman or member of the Board of Directors of
various Group companies of SIX Group Ltd
−Member of the Board of Directors, World Federation
of Exchanges, Paris
−Chairman of the Board of Directors, Genossenschaft
Konzert und Theater (concert and theater society),
St. Gallen
Dr. Christian André Katz (1967)
Swiss citizen, CEO Division Swiss Exchange. Education:
Graduate degree in Business Administration, PhD in
Economics, University of St. Gallen.
Career
1993 –1997 Derivatives Sales, Credit Research, SBC
Warburg, Zurich and Hong Kong. 1997 –1998 Senior
Manager, Head of Asia Research, London Forfaiting
Company, London and Hong Kong. 1998 –2005 Vice
President, Head of Equities Sales for Switzerland, J.P.
Morgan, London. 2005 –2006 Vice President, Head of
Research Marketing for Europe, J.P. Morgan, London.
2006 –2009 Managing Director, Head of Equities &
Institutional Equity Derivatives and Office Head, Goldman Sachs International, Zurich Representative Office,
The Group Executive Board as of 31 December 2013, from left to
right: Dr. Urs Rüegsegger, Dr. Christian Katz, Thomas Zeeb, Marcel
Bättig, Niklaus Santschi, Robert Bornträger, Dr. Stefan Mäder
Zurich. Since 2009 CEO Division Swiss Exchange, SIX
Group Ltd, Zurich.
−Member of the Board of Directors (Vice Chairman),
STOXX Ltd, Zurich
−Chairman and member of the Board, Federation of
European Securities Exchanges (FESE)
Thomas Zeeb (1964)
Canadian citizen, CEO Division Securities Services. Education: BA Honors Business Administration, University
of Western Ontario, London, Ontario; MBA, Katholieke
Universiteit Leuven, Belgium.
Career
1996 –1998 Vice President, Sales Manager, Continental
Europe, Bank of New York, London. 1998 –2002 Managing Director, Head of Sales, Bank of New York, London.
2002 –2004 Managing Director, Non-Bank Client Executives, Bank of New York, London. 2004 –2005 Director,
Head of Section, Clearstream Banking SA, London.
2006 Director, Head of Department, Clearstream Banking SA, London. 2006 –2008 Board member, Clearstream
International SA, Luxembourg. 2006 –2008 Board member, Clearstream Banking SA, Luxembourg. Until August
2008 Member of the Supervisory Board, Clearstream
Banking Frankfurt, Frankfurt am Main. Since 2008 CEO
Division Securities Services, SIX Group Ltd, Zurich.
−Member of the Board, Link-Up Capital Markets S.L.,
Madrid (until December 2013)
– Member of the Board, International Securities
Services Association (ISSA), Zurich
Marcel Bättig (1968)
Swiss citizen, interim CEO Division Financial Information
business area. Education: Mechanical engineering degree (higher technical college, BSc); MBA, University of
Western Ontario, Canada.
Career
1998–2000 Associate, McKinsey & Company, Zurich.
2000–2002 Engagement Manager, McKinsey & Company, Zurich. 2002–2004 Project Manager, Mettler
Toledo, Greifensee. 2004–2009 Head Field Automa
tion Competence Center, Mettler Toledo, Greifensee.
2010–2012 COO, SIX Financial Information Ltd, Zurich.
Since June 2013 interim CEO Division Financial Information, SIX Group Ltd, Zurich.
– Chairman or member of the Board of Directors of
Niklaus Santschi (1968)
Swiss citizen, CEO Division Payment Services. Education:
Graduate degree in History of Economics, University of
Zurich; Breakthrough Program for Senior Executives,
IMD, Laus anne; International Executive Programme,
INSEAD, Fontainebleau / Paris.
Career
1991 –1997 Operations, Eurocard Switzerland SA, Zurich.
1997 –1999 Business Manager, Issuing, Payserv AG,
Zurich. 1999– 2001 Head of New Accounts Processing,
Payserv AG, Zurich. 2002– 2004 Head European Sales,
Telekurs Card Solutions AG, Zurich. 2004– 2007 Head
Marketing & Sales, member of the Executive Board,
Telekurs Multipay AG, Zurich. 2008 –2011 Head Business Development & Sales, member of the Executive
Board, SIX Multipay AG, Zurich, and Managing Director,
SIX Pay SA, Luxembourg. Since 2012 CEO Division Payment Services, SIX Group Ltd, Zurich.
−Member of the Board of Directors, SIX Interbank
Clearing Ltd, Zurich
−Member of the Board of Directors, Cetrel SA,
Luxembourg
−Chairman of the Board of Directors, SIX Payment
Services (Europe) SA, Luxembourg
−Member of the Supervisory Board, PayLife Bank
GmbH, Vienna
Robert Bornträger (1960)
Swiss citizen, CEO Division IT & Logistics. Education:
Graduate studies in Computer Science, ETH Zurich;
graduate studies in Economics with focus on IT, University of Zurich; graduate degree in Business Informatics;
further training in Executive Management, IMD, Lau
sanne.
Career
Various positions in IT as consultant and developer.
1993 –1998 CEO, Swissair, Sweden and Hungary.
1998 –2001 Chief Information Officer, member of the
Executive Board, Swisscargo AG and Cargologic AG,
Zurich. 2002 –2003 CEO, Integralis Schweiz AG, Glattbrugg. 2003 –2005 Chief Information Officer, member of
74 the Extended Executive Board, Swiss International Air
Lines Ltd, Zurich. 2005 –2007 CEO and member of the
Executive Board, Telekurs Services AG / Telekurs Holding, Zurich. Since 2008 CEO Division IT & Logistics, SIX
Group Ltd, Zurich.
−Member of the Board, Swiss IT Leadership Forum
−Chairman of the Board of Directors of a Group
company of SIX Group Ltd
Dr. Stefan Mäder (1963)
Swiss citizen, Group CFO. Education: Graduate degree
and PhD in Applied Economics, University of Zurich.
Career
1988 –1994 Lecturer, Socioeconomic Institute, University of Zurich. 1991 –1994 Research fellow, Institute for
Empirical Research in Economics, University of Zurich.
1994 –1996 Economist, International Monetary Relations, Swiss National Bank. 1996 –1997 Financial Analyst, Global Asset Management, Zurich Financial Services, Zurich. 1998 –2001 Head of Global Investment
Management Services, Zurich Financial Services, Zurich. 2001 –2002 COO, Ecofin Research and Consulting
AG, Zurich. 2002 –2004 Chief Investment Officer, member of the Executive Board, Zurich Switzerland, Zurich.
2004 –2007 Head of Finance and Services, CFO, member of the Executive Board, Zurich Switzerland, Zurich.
2007– 2010 CFO Europe, member of the Executive
Board, Zurich Europe General Insurance, Zurich. Since
December 2010 Group CFO, SIX Group Ltd, Zurich.
−Member of the Board of Directors, Cetrel SA,
Luxembourg
−Member of the Board of Directors, STOXX AG, Zurich
−Member of the Board of Directors of various Group
companies of SIX Group Ltd
– Member of the Board of Directors, Swiss Mobiliar
Cooperative Company Ltd, Bern
Remuneration
Auditors
At the request of the Nomination & Compensation Committee, the Board of Directors defines Group-wide remuneration guidelines. The Chairman and the members
of the Board of Directors receive a fixed salary. The
members of the Group Executive Board receive a fixed
basic salary as well as a variable cash payment. The latter is dependent on both company revenues and individual performance. Part of the variable remuneration of
Group Executive Board members is deferred and paid
over three years, subject to the members remaining employed with the company.
Ernst & Young AG was appointed as auditor of SIX Group
Ltd on 1 January 2008. The auditor in charge is Thomas
Schneider, accredited audit expert. Pascal Berli is also
an accredited audit expert. The Board of Directors is responsible for supervising and controlling the external
auditors and Group auditors. It also handles the internal
and external auditors’ reports, and is supported in this
task by the Audit Committee. The Audit Committee regularly receives and processes reports from representatives of the external auditors or the Group auditors. Detailed information on remuneration is provided in the
financial report.
In the year under review, eight members of the Group
Executive Board and eleven members of the Board of
Directors were paid a total of CHF 13.1 million. This includes members of the Board of Directors and the Group
Executive Board who either left, joined or intermittently
filled a position during the course of the year. Along with
the basic and variable remuneration, the amount also
covers payments or benefits in kind customary in the
industry. Social benefits are not included in the amount.
SIX does not grant loans of any kind to either its employees or corporate bodies.
Performance analysis is based on quantitative and qualitative objectives defined for each individual at the beginning of the financial year. These comprise the business result, strategy implementation and the achievement
of personal goals.
Information policy
Up-to-date information is available at www.six-group.com.
Calls to attend meetings and communications to the
shareholders are sent by letter to the addresses recorded in the share register. Subject to legal requirements, announcements to creditors are published in the
“Swiss Official Gazette of Commerce.” SIX publishes its
business results semi-annually. All registered shareholders are sent a brief report (shareholder letter) containing
an overview of the Group’s business development and
activities.
The annual report is available in German and English and
can be ordered on the Internet:
www.six-group.com/annual-report-order/en
The financial report is published in English on the Internet:
www.six-group.com/annual-report/en
Consolidated balance sheet
31/12/ 2013
31/12/ 2012 1
Assets
Cash and cash equivalents
Trade and other receivables
Receivables from clearing & settlement
Financial assets
Inventories
Current income tax receivables
Other current assets
Current assets
Property, plant and equipment
Intangible assets
Investments in associates
Financial assets
Assets from pension fund benefits
Other non-current assets
Deferred tax assets
Non-current assets
Total assets
3,595.6
787.8
1,882.0
540.9
18.3
5.9
57.6
6,888.1
242.0
208.5
217.9
337.4
74.7
6.4
10.0
1,096.9
7,985.0
4,044.9
315.1
2,169.9
501.7
15.1
3.6
57.0
7,107.4
242.2
156.3
216.8
152.5
57.5
3.5
7.2
836.1
7,943.5
Liabilities
Bank overdrafts
Trade and other payables
Payables from clearing & settlement
Financial liabilities
Provisions
Current income tax payables
Other current liabilities
Current liabilities
Financial liabilities
Provisions
Other non-current liabilities
Deferred tax liabilities
Non-current liabilities
47.7
330.6
4,902.1
98.3
10.0
31.9
254.5
5,675.0
6.7
33.0
13.9
71.7
125.3
0.1
59.9
5,178.3
59.5
9.3
16.4
233.0
5,556.3
6.7
20.7
16.1
65.4
109.0
Total liabilities
5,800.3
5,665.3
Equity
Share capital
Capital reserves
Other reserves
Retained earnings
Shareholders’ equity
Non-controlling interests
Total equity
Total liabilities and equity
19.5
480.0
–29.2
1,708.9
2,179.3
5.4
2,184.7
7,985.0
19.5
770.5
–24.5
1,495.5
2,261.0
17.2
2,278.2
7,943.5
in CHF m
1
As part of the switch to IFRS, the previous year’s figures were adjusted for the purposes of comparison.
Consolidated income statement
in CHF m
Commission revenues
Transaction revenues
Service revenues
Net interest income from banking business
Other operating income
Personnel expenses
Other operating expenses
Depreciation, amortization and impairment
Total operating expenses
Operating profit
Share of profit of associate
Financial income
Financial expenses
Earnings before interest and tax (EBIT)
Interest income
Interest expenses
Earnings before tax (EBT)
Income tax expenses
Group net profit
of which attributable to shareholders of SIX Group Ltd
of which attributable to non-controlling interests
Earnings per share (CHF)
Basic profit for the year attributable to shareholders of SIX Group Ltd
Diluted profit for the year attributable to shareholders of SIX Group Ltd
1
2013
2012 1
542.1
388.2
586.1
3.3
482.6
357.6
554.7
4.5
63.1
1,582.7
–572.9
–702.6
–111.0
–1,386.6
196.2
24.4
45.8
–21.8
244.6
11.5
–4.9
251.1
–41.0
210.2
205.5
4.6
54.0
1,453.3
–573.8
–635.7
–118.1
–1,327.7
125.6
29.7
316.3
–28.9
442.7
10.4
–2.7
450.4
–40.0
410.4
407.4
3.0
10.87
10.87
21.54
21.54
As part of the switch to IFRS, the previous year’s figures were adjusted for the purposes of comparison.
Locations
SIX is present in 23 countries
outside Switzerland
Switzerland Zurich, Olten,
Monaco
Geneva, Lugano, Biel
The Netherlands Amsterdam
Belgium Brussels
Norway Oslo
Germany Frankfurt, Hamburg Austria Vienna
Denmark Kopenhagen
Poland Warsaw
France Paris
Finland Helsinki
Hong Kong
Ireland Dublin
Singapore
Spain Madrid
Sweden Stockholm,
Gothenburg
Italy Milan
United Kingdom London,
Japan Tokyo
Edinburgh
Canada Toronto
Luxembourg
Morocco Casablanca
Hungary Budapest
United States of America
New York, Boston, S tamford CT,
San Francisco
SIX Swiss Exchange Ltd
Selnaustrasse 30
P.O. Box 1758
8021 Zurich, Switzerland
T +41 58 399 5454
www.six-swiss-exchange.com
SIX Exfeed Ltd
Selnaustrasse 30
P.O. Box
T +41 58 399 2977
15 Appold Street
London EC2A 2NE
United Kingdom
T +44 207 864 4336
Route de Meyrin 49
P.O. Box 260
1211 Geneva 28, Switzerland
T +41 58 399 5454
Regulatory committees and advisory commissions:
www.six-swiss-exchange.com/about_us/company/index_comission_en.html
Participant lists and associated participants: www.six-swiss-exchange.com/participants_en.html
Significant participations:
STOXX Limited
Selnaustrasse 30
P.O. Box
T +41 58 399 5300
www.stoxx.com
78 SIX Structured Products
Exchange AG
Selnaustrasse 30
P.O. Box 1758
T +41 58 399 2100
www.six-structuredproducts.com
Swiss Fund Data AG
Hottingerstrasse 14
T +41 44 250 5120
www.swissfunddata.ch
Indexium AG
Selnaustrasse 30
Postfach
T +41 58 399 4920
Locations
SIX SIS Ltd
Brandschenkestrasse 47
P.O. Box 1758
T +41 58 399 3111
www.six-securities-services.com
SIX SIS Ltd
Baslerstrasse 100
P.O. Box
4601 Olten, Switzerland
T +41 58 399 3111
SIX SAG Ltd
Baslerstrasse 90
P.O. Box
T +41 58 399 6111
SIX x-clear Ltd
Olof Palmes gata 11
P.O. Box 3117
10362 Stockholm, Sweden
T +46 8 5861 6351
SIX x-clear Ltd
15 Appold Street
London EC2A 2NE,
United Kingdom
T +44 207 550 5447
Swiss Securities Post-Trade Council:
www.swiss-sptc.com
SIX x-clear Ltd
Brandschenkestrasse 47
P.O. Box 1758
T +41 58 399 4311
SIX Financial Information Ltd
Hardturmstrasse 201
P.O. Box 1521
T +41 58 399 5111
www.six-financial-information.com
Route de Meyrin 49
P.O. Box 260
T +41 58 399 7711
Via Cantonale 1
6901 Lugano, Switzerland
T +41 58 399 7111
Rolotec Ltd
Albrecht-Haller-Strasse 9
P.O. Box
2501 Bienne, Switzerland
T +41 32 344 8600
www.rolotec.ch
SIX Financial Information
Belgium S.A./N.V.
29, boulevard Louis Schmidt
1040 Brussels, Belgium
T +32 2 790 050
EuroPerformance
89, avenue François Arago
92017 Nanterre cedex, France
T +33 1 7072 4400
www.europerformance.fr
SIX Financial Information MENA
43, boulevard d’Anfa
20070 Casablanca, Morocco
T +212 5 2227 6410
Singapore Pte. Ltd
5 Temasek Boulevard
#16-01 Suntec Tower Five
Singapore 038985, Singapore
T +65 6338 3808
Denmark A/S
Nikolaj Plads 2, 5
1067 Kopenhagen K, Denmark
T +45 33 41 1111
Hong Kong Limited
20/F One Int. Finance Centre
1 Harbour View Street
Central Hong Kong
T +852 2971 0388
Monaco SAM
“Les Acanthes”
6, avenue des Citronniers
98000 Monaco, Monaco
T +377 9797 7161
Sweden AB
Olof Palmes gata 11
Box 3117
10362 Stockholm, Sweden
T +46 8 5861 6300
Deutschland GmbH
Theodor-Heuss-Allee 108
60486 Frankfurt am Main, Germany
T +49 69 717 00 0
SIX Financial Information Ireland
Arena House
Arena Road
Sandyford
Dublin 18, Ireland
T +353 1 213 0722
Nederland B.V.
Amsteldijk 166
1079 LH Amsterdam,
The Netherlands
T +31 20 3012 888
Sweden AB
Nordhemsgatan 12, 4tr
41327 Göteborg, Sweden
T +46 8 5861 6300
Finland Oy
Aleksanterinkatu 17 (WTC)
00100 Helsinki, Finland
T +358 207 33 40 43
Italia S.r.l.
Via del Vecchio Politecnico 3
20121 Milan, Italy
T +39 02 76 45 631
Norway AS
Holbergsgate 1
0166 Oslo, Norway
T +47 23 32 6620
España SA
Paseo de la Castellana, 40 bis
28046 Madrid, Spain
T +34 91 577 5500
SIX Financial Information France
Siège social
5, boulevard Montmartre
75002 Paris, France
T +33 1 5300 0100
Japan Ltd
Hulic Kakigaracho Bldg 5F
1-28-5, Nihonbashi
Kakigaracho, Chuo-ku
Tokyo 103-0014, Japan
T +81 3 3808 2271
Deutschland GmbH
Zweigniederlassung Wien
Wipplingerstrasse 34
1010 Vienna, Austria
T +43 1 5324 5710
SIX Financial Information UK Ltd
15 Appold Street
London EC2A 2NE,
United Kingdom
T +44 207 550 5000
Mailing address
91/93, avenue François Arago
92739 Nanterre cedex, France
T +33 1 4729 4729
Luxembourg S.A.
15, rue Léon Laval
3372 Leudelange, Luxembourg
T +352 26 1161
Deutschland GmbH
Oddział w Polsce
ul. Prosta 32
00-838 Warsaw, Poland
T +48 22 457 75 73
SIX Financial Information UK Ltd
9/10 St. Andrew Square
Edinburgh EH2 2AF,
United Kingdom
T +44 13 1718 6006
Group companies abroad:
Locations
USA Inc.
River Bend Center
One Omega Drive, Building 3
Stamford, CT 06907, USA
T +1 203 353 8100
USA Inc.
48 Wall Street, 31st Floor
New York, NY 10005, USA
T +1 212 635 5501
USA Inc.
One Market Street
Spear Tower, Suite 3600
San Francisco, CA 94105, USA
T +1 415 293 8320
USA Inc.
First Canadian Place
100 King St. West, Suite 5700
Toronto, ON M5X 1C7, Canada
T +1 416 915 4121
USA Inc.
101 Federal Street
Suite 1900
Boston, MA 02110, USA
T +1 617 342 7050
SIX Payment Services Ltd
Hardturmstrasse 201
P.O. Box 1521
T +41 58 399 9111
www.six-payment-services.com
SIX Payment Services Ltd
Route de Meyrin 49
P.O. Box 260
T +41 58 399 9111
SIX Interbank Clearing Ltd
Hardturmstrasse 201
P.O. Box 1521
T +41 58 399 2999
SIX Payment Services
(Germany) GmbH
Langenhorner Chaussee 92–94
22415 Hamburg, Germany
T +49 40 325 967 0
(Europe) S.A.
10, rue Gabriel Lippmann
5365 Munsbach, Luxembourg
T +352 355 66 1
(Sweden) AB
Veterinärgränd 6
12163 Johanneshov, Sweden
T +46 8 5451 3530
SIX Payment Services UK Ltd
Regal House
70 London Road
Twickenham TW1 3QS
United Kingdom
T +44 208 892 2573
(Europe) S.A.
Zweigniederlassung Deutschland
Dreieichstrasse 59
60594 Frankfurt, Germany
T +49 69 95 932 270
(Luxembourg) S.A.
15, rue Léon Laval
3372 Leudelange, Luxembourg
T +352 355 66 1
(USA) Corp.
P.O. Box 4554
Oak Brook, IL 60522-4554, USA
T +1 888 727 0220
(Europe) S.A
Succursale Italia
Via del Vecchio Politecnico 3
20121 Milan, Italy
T +39 027 626 0175
(Europe) S.A.
Oddział w Polsce
ul. Prosta 32
00-838 Warsaw, Poland
T +48 22 275 51 32
(Europe) S.A.
Magyarországi Fióktelepe
IRENE office building
1013 Budapest
Krisztina krt. 32., Hungary
T +361 202 14 17
Group companies abroad:
Significant participations:
Cetrel SA
10, rue Gabriel Lippmann
5365 Munsbach
Mailing address:
2956 Luxembourg, Luxembourg
T +352 3 55 66-1
www.cetrel.lu
PayLife Bank GmbH
Marxergasse 1B
1030 Vienna, Austria
T +43 1 717 01-0
www.paylife.at
Corporate Functions
SIX Management Ltd
Head Office
Selnaustrasse 30
P.O. Box 1758
T +41 58 399 2091
80 SIX Group Services Ltd
Hardturmstrasse 201
P.O. Box
T +41 58 399 4111
Wertpapierwelt Museum
Baslerstrasse 90
T +41 58 399 6622
www.wertpapierwelt.ch
Produced by: SIX Group Ltd, Zurich
Editorial and production management: SIX Management Ltd, Corporate Communications, Zurich
Concept and design: Keim Identity GmbH, Zurich
Photography:
Pages 1, 14–18, 24–28, 36–40, 46–50, 58–62: Joël Tettamanti
Pages 8, 72–73: Tanja Demarmels
Translations: CLS Communication AG, Opfikon
Proofreading: text control AG, Zurich
Sustainability reporting consulting: sustainserv GmbH, Zurich and Boston
Carbon-neutral printing: Neidhart + Schön AG, Zurich
Paper: Planojet, FSC
© SIX Group Ltd 2014
SIX Group Ltd
Selnaustrasse 30
P.O. Box 1758
8021 Zurich
www.six-group.com

24 Apr 2014 Report SIX Annual Report 2013

Transcription

Similar documents

Kompendium HR-Management 2012