With its self-regulated SIX Swiss Exchange and SIX Digital Exchange, Switzerland pursues a regulatory model that has proven to be efficient and close to the market worldwide. Self-regulation combines tangible benefits for participants in the capital market.
The operator of the stock exchanges in Switzerland, SIX, has the legal mandate to ensure a regulatory and supervisory organization that is independent of itself: this is precisely the task that SIX Exchange Regulation AG (SER) fulfills. As an autonomous and independent body within SIX, it reports directly to the Chairman of the Board of Directors. This ensures autonomy vis-à-vis the operational business of SIX Swiss Exchange and SIX Digital Exchange.
Self-regulation means that market participants, i.e. issuers, trading participants and investors, set the rules for exchange trading themselves. The Swiss Financial Market Supervisory Authority FINMA must approve these regulations; SER is responsible for ensuring that issuers and trading participants comply with them. Its own jurisdictional bodies can sanction market participants if they violate exchange rules. SER also works closely with FINMA and law enforcement agencies in several areas.
Self-regulation - cost-efficient, high-quality and dynamic
Regulating a market, specifically including the financial market, requires extensive expertise. In the approach of self-regulation, the expertise and experience flows directly, quickly and efficiently into the regulation. This can be explained primarily by the close proximity of the parties involved to the market; specialists with the relevant expertise can draw from a large reservoir of knowledge and experience, which benefits self-regulation and the market directly and without lengthy political processes. This results in high-quality regulation. At the same time, self-regulation benefits from another advantage: the acceptance of the regulations within the regulated industry is very high, which increases compliance with the rules.
Last but not least, the approach of self-regulation thus results in a noticeable cost relief in favor of the state.
The drive for innovation, digitalization of business processes, changes to long-standing business models, new data bases, etc. regularly ensure that adjustments are also necessary in regulatory terms. Due to the corresponding market proximity of the parties involved, the concept of self-regulation also offers tangible advantages in this respect: Changes in the regulated industry are perceived by those affected at an early stage and can thus be incorporated into the further development of regulation in a targeted and rapid manner. This creates a dynamic that enables the self-regulated financial center to be highly competitive and to adapt very quickly.
A well-functioning financial market is fundamental for the Swiss economy. SIX Swiss Exchange is at the heart of the capital market. Accordingly, it is important to have a functioning regulation that is close to the market, which creates confidence for investors and market participants and thus contributes to increasing the liquidity and thus the competitiveness of the stock exchange.
Self-regulation has proven its worth in the area of the stock exchange: it is close to the market, flexible, based on the greatest possible expertise and is of high quality.
Corinne Riguzzi has headed the self-regulatory body of the Swiss stock exchange, SIX Exchange Regulation, since 1 January 2017. The 47-year-old lawyer with a law degree and LL.M. has been working in the area of trade surveillance since 2006. In August 2012, she took over overall responsibility for trade surveillance within SIX Exchange Regulation. Since then, she has been a member of the Executive Board. Corinne Riguzzi is on the IOSCO Affiliate Members Consultative Committee and is very familiar with the entire spectrum of self-regulation and its bodies.