SIX is partnering with Clearstream in order for the Connexor service of SIX to become a D7 Digital Market Partner to process and distribute reference data of financial instruments.
D7 is Deutsche Börse’s digital post-trade platform for digitizing financial instruments, which allows for the issuance of electronic securities, operating under the German eWpG regulation.”
This move comes in response to “a regulatory directive as well as market needs for standardization, representing a significant leap towards a digital and efficient future for financial markets.”
Financial market infrastructure provider SIX is “connecting its flagship platform for reference data distribution, Connexor, to D7, Deutsche Börse’s digital post-trade platform.”
The collaboration between SIX and Clearstream, Deutsche Börse’s post-trade provider, capitalizes on the profound expertise of both parties “within their markets Switzerland and Germany.”
It expands SIX Swiss Exchange’s position as “a one-stop shop for international reference data processing in Europe and Asia, offering access to a holistic solution to issuers and financial institutions across different countries and jurisdictions.”
The initiative contributes to digitalization and standardization of processes “within the European financial market.”
Result is regulatory compliance, “reduction of complexity and minimization of maintenance-intensive interfaces, standardized and higher reference data quality through reduction of media-breaks as well streamlined product lifecycle management through automation.”
The initiative responds to “a regulatory directive introduced 3 June 2021 (“Gesetz zur Einführung von elektronischen Wertpapieren eWpG”) which has mandated the standardized and digitalized transmission of book-entries by issuers of financial instruments.”
This necessitates a comprehensive solution “for reference data distribution, which will be offered by the creation of one single access for product issuers, reducing process costs.”
Issuers can efficiently fulfill and also “simplify their reporting obligations as well as related procedures by accessing D7 via Connexor, eliminating the need to construct direct interfaces on their own.”
The collaboration provides Clearstream and SIX with “the opportunity to leverage on their innovative technology in managing the digitized and automated lifecycle of financial products in a standardized manner. This offers clients straight-through processing as well as increase of volume and quality of the data processed. By simplifying transmission procedures, this collaboration is also set to increase efficiency.”
The connection between Connexor and D7 will “be activated provisionally in the second half of 2024, providing market participants with one single access to fulfill their regulatory obligations.”
André Buck, Global Head of Sales & Relationship Management at SIX Swiss Exchange, stated:
“The new partnership fills us with great pride. This is because it is based on years of evolutionary innovation as an infrastructure provider. Through Connexor and D7, we both enable our customers to benefit significantly from this partnership.”