(12.10.2022) The Swiss stock exchange operator has developed a new listing segment for small and medium-sized companies via its digital platform SIX Digital Exchange (SDX). Called SDX SME Equity, it will give SMEs privileged access to the market.
SDX's new digital model promises more efficient and less expensive trading. Using a technology called "atomic settlement", the segment allows the buying and selling of securities without going through a central counterparty (CCP), a third-party intermediary necessary for secure trading through traditional channels. According to the exchange's press release, this advance will not only result in increased efficiency but also enhanced security.
Announced in June 2022 and available since September 15, the SDX SME Equity service is aimed at companies with more than 50 investors and a capitalization of up to CHF 500 million at the time of listing. In addition, access to the segment is possible from CHF 12 million of equity capital, compared to CHF 25 million for the general segment ("Main Market").
The proportion of freely tradable shares (also known as "free float") must exceed 15%. By comparison, a traditional listing on the Swiss stock exchange requires at least 20%. Once listed, the company can remain in this segment until it reaches a capitalization of CHF 1 billion, after which it will be transferred to the general segment of SDX.
The group cites the many advantages of this segment for SMEs, including greater speed and efficiency in raising funds, access to a larger shareholder base and increased credibility with potential partners or employees. The model will also increase its visibility with investors and gain recognition.
Last modification 12.10.2022
