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Switzerland's Financial Infrastructure: Today and Tomorrow

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  • Martin Gisiger
  • Werner Weber

Abstract

This paper delves into the question of the driving forces behind financial infrastructure developments, both in Switzerland and globally. Firstly, the case of the "Swiss value chain", its home market and its pan-European reach, will be presented. As the case of virt-x or Eurex demonstrates, the domicile of trading platforms at the case of, is no longer bound to a traditional home market. We then proceed to a broad discussion of the economic factors that shape the European landscape. Liquidity and network effects are pushing trading platforms towards centralisation. For clearing and settlement providers and their reliance on regulatory framework conditions, mobility is more restrained, at least in the case of Switzerland. Market imperfections on both the supply and demand sides provide a multilayered picture of the driving forces of evolving market structures. In view of the significant implications of imperfect competition, the role of government is then discussed. Finally, future issues and challenges for Switzerland's globally oriented financial infrastructure are analysed. Transparency of pricing structures and free access to infrastructure providers remain important challenges for government policies. Dieser Artikel untersucht die für die Entwicklung der Finanzmarktinfrastrukturen bedeutenden Faktoren unter besonderer Berücksichtigung des Schweizer Finanzsektors. Als erstes wird die sog. "Swiss Value Chain", d.h. der Handel und die Abwicklung von Wertpapiergeschäften und ihre Einbettung im europäischen Umfeld veranschaulicht. Mit virt-x und Eurex befinden sich zwei wichtige Handelsplattformen des Schweizer Finanzsektors im Ausland. Anschließend werden die ökonomischen Faktoren diskutiert, die auf die Entwicklung der Finanzmarktinfrastrukturen einen prägenden Einfluss ausüben. Eine größtmögliche Liquidität sowie die Existenz substantieller Netzwerkeffekte ergeben einen Druck in Richtung Zentralisierung des Wertschriftenhandels. Beim Clearing und Settlement ist die Mobilität der Anbieter - zumindest für den Fall der Schweiz - aufgrund ihrer Abhängigkeit von den regulatorischen Rahmenbedingungen eingeschränkt. Marktunvollkommenheiten und Marktversagen auf der Angebots- wie auch auf der Nachfrageseite haben zur Folge, dass der Wettbewerb nur in einem beschränkten Maß funktioniert. Daher wird im Weiteren die Rolle des Staates als Regulator im Bereich der Finanzmarktinfrastruktur diskutiert. Der Artikel schließt mit einer Darstellung der künftigen Herausforderungen, denen sich die international orientierte Schweizer Finanzmarktinfrastruktur zu stellen hat. Transparenz in der Preisfestlegung und der freie Zugang zur Infrastruktur stellen dabei wichtige Anforderungen an die Wirtschaftspolitik dar.

Suggested Citation

  • Martin Gisiger & Werner Weber, 2005. "Switzerland's Financial Infrastructure: Today and Tomorrow," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 74(4), pages 51-62.
    • Handle: RePEc:diw:diwvjh:74-4-4
    DOI: 10.3790/vjh.74.4.51
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