Trading on SIX Swiss Exchange Preparatory Examination Documentation for Traders Module Trading June 2021 Sensitivity: C1 Public Trading on SIX Swiss Exchange Table of Contents Table of Contents Table of Contents ............................................................................................................................................................................. 2 1. Introduction .............................................................................................................................................................. 7 1.1. Types of Trader Examination ............................................................................................................................................ 8 1.1.1. Examination for Non-Licensed Traders ("Trading" and "Rules and Regulations" Modules – Manual Parts 1 and 2) ... 9 1.1.2. Examination for Licensed Traders ("Trading" Module – Manual Part 1) ......................................................................... 9 1.2. Structure of the Trader Examination ................................................................................................................................. 9 1.2.1. Question Types and Evaluation ........................................................................................................................................ 9 1.2.2. Aids during the Examination ............................................................................................................................................ 10 1.3. Tips on preparing for the Exam ....................................................................................................................................... 10 2. SIX .......................................................................................................................................................................... 11 2.1. Aspiration and Success Factors ...................................................................................................................................... 12 2.2. Business Areas and Structure of SIX .............................................................................................................................. 12 3. SIX Swiss Exchange .............................................................................................................................................. 13 3.1. Introduction ...................................................................................................................................................................... 13 3.2. SIX Swiss Exchange AG ................................................................................................................................................. 13 4. Trading Participants .............................................................................................................................................. 15 4.1. Overview of Market Participants ..................................................................................................................................... 15 4.1.1. Securities Firms ............................................................................................................................................................... 15 4.1.2. Market Maker and Liquidity Provider .............................................................................................................................. 15 4.1.3. Traders ............................................................................................................................................................................. 15 4.2. Participant Admission Requirements .............................................................................................................................. 16 4.2.1. Authorisation as Securities Firm or Remote Participant ................................................................................................. 16 4.2.2. Participation in a Clearing and Settlement Organisation................................................................................................ 16 4.2.3. Collateral Deposit ............................................................................................................................................................ 16 4.2.4. General Information on Exchange System Access ........................................................................................................ 16 4.3. Participants' Rights and Obligations ............................................................................................................................... 17 4.3.1. Continued Compliance with Admission Requirements .................................................................................................. 17 4.3.2. Compliance with Statutory and Regulatory Provisions .................................................................................................. 17 4.3.3. Use of the Exchange System .......................................................................................................................................... 17 4.3.4. Record-Keeping Duties ................................................................................................................................................... 17 4.3.5. Duty to provide Information ............................................................................................................................................. 17 4.4. Organisational Obligations of Securities Firms............................................................................................................... 18 4.4.1. Confidential Price-Sensitive Information ......................................................................................................................... 18 4.4.2. Chinese Walls/Areas of Confidentiality ........................................................................................................................... 18 4.5. Supervisory Rules for Market Conduct in Securities Trading (Art. 142ff FMIA) ............................................................ 18 4.5.1. Permitted Securities Transactions .................................................................................................................................. 18 4.5.2. Market Manipulation ........................................................................................................................................................ 19 4.5.3. Overview Market Manipulation ........................................................................................................................................ 20 4.6. Swiss Bankers Association Guidelines ........................................................................................................................... 20 5. Technical Connectivity .......................................................................................................................................... 22 5.1. Connectivity Technology ................................................................................................................................................. 22 5.2. Types of Connectivity for Trading Participants ............................................................................................................... 23 5.3. Interfaces ......................................................................................................................................................................... 23 5.3.1. Standard Trading Interfaces (with added Benefits) ........................................................................................................ 24 5.3.2. Standard Trading Interface (STI) .................................................................................................................................... 24 Sensitivity: Public Trading on SIX Swiss Exchange Table of Contents 5.4. Direct Trading Interfaces ................................................................................................................................................. 24 5.4.1. OUCH Trading Interface (OTI) ........................................................................................................................................ 24 5.4.2. Quote Trading Interface (QTI) ......................................................................................................................................... 25 5.5. Market Data Interfaces .................................................................................................................................................... 25 5.5.1. ITCH Market Data Interface (IMI) .................................................................................................................................... 25 5.5.2. SIX MDDX Multi-Dimensional Data fluX™ Interface (SIX MDDX)................................................................................. 25 5.6. Reference Data Interface (RDI) ...................................................................................................................................... 26 5.7. Trader ID .......................................................................................................................................................................... 27 5.8. Direct Market Access for Clients ..................................................................................................................................... 27 5.8.1. Clients