The Swiss stock exchange SIX has launched a trading platform for digital assets – SIX Digital Exchange.
SIX Group, owner of the exchange, placed the first senior unsecured digital bond with a total volume of 150 million Swiss francs (143 million euros) and maturing in 2026. The digital bond bears a coupon of 0.125% per year.
The bond is divided into a digital segment with a total issue volume of CHF 100 million traded on SDX Trading and centrally held by SIX Digital Exchange, and a traditional segment with a trading volume of CHF 50 million on SIX Swiss Exchange, centrally owned by SIX SIS, the Securities Custodian (CSD) providing custodial services.
Credit Suisse, UBS Investment Bank and Zürcher Kantonalbank acted as joint lead managers for the transaction.
According to SIX, the bond offering has been oversubscribed on several occasions, generating “strong interest” from institutional investors, he said.
SIX Digital Exchange was approved to operate as an exchange and central custodian of digital assets from the financial supervisory authority FINMA in September.
Thomas Zeeb, Global Head of Exchanges at SIX, said: “The first issue of a tokenized bond on SIX Digital Exchange, its listing and placement in the market prove that forward-looking distributed ledger (DLT) technology also works very well. well in the highly regulated capital market.
The Swiss government takes action against greenwashing
The Swiss government has recommended that the financial industry use “meaningful climate compatibility indicators” to improve the transparency of all financial products and client portfolios in order to avoid the risks of greenwashing.
One of the methods to improve transparency is, for example, to use key temperature data. This means that the production plans of companies in the investment portfolio are confronted with the necessary measures to be taken to limit global warming to a maximum of 1.5 ° C.
The data helps clients rank financial products based on their climate impact, the government said, encouraging the financial sector to join “net zero alliances.”
The government has also asked the Federal Department of Finance (FDF), in collaboration with the Federal Department of the Environment, Transport, Energy and Communications (DETEC), to communicate by the end of 2022 on the progress made by the financial industry to set up place the recommendations.
The firm also instructed the FDF, in cooperation with DETEC and the supervisory authority FINMA, to propose changes to the law on financial markets by the end of 2022 in order to avoid greenwashing.
BaFin objectives and statistics
The German financial supervisory authority BaFin has set targets for the period 2022-2025, taking into account sustainability in supervisory activities, focusing on the analysis and mitigation of financial risks for supervised companies and compliance with disclosure requirements, and the risks of greenwashing.
BaFin will ensure that businesses and the financial system withstand capital and liquidity pressures, including by examining interest rate and market scenarios, and at the same time examining possible new business models to the light of scanning.
It will also examine cybersecurity risks, corporate governance, money laundering prevention and how to implement effective balance sheet control.
The supervisory authority also released statistics on Pensionskassen and Pensionsfonds for 2020. The number of Pensionskassen under supervision remained unchanged in 2022 at 135, with total assets of 190 billion euros, compared to 183 billion euros. euros in 2019.
The capital of the companies held stood at 184.5 billion euros at the end of last year, an increase from 176.9 billion euros the previous year.
The 34 Pensionsfonds under the supervision of BaFin in 2020 had total assets of 55.34 billion euros and capital for investments of 3.47 billion euros.
Mixed comments from German actuaries on Solvency II
The German Association of Actuaries (DAV) has voted on the European Commission’s proposal to review the Solvency II Directive.
Maximilian Happacher, vice-president of DAV, said the Commission proposal presented “significant improvements” compared to the original idea of the European Insurance and Occupational Pensions Authority (EIOPA), in particular with regard to concerns the interest rate risk.
Actuaries consider it positive that in future interest rate risks will be measured by actual developments in the capital market, and that the transition period to the new regime lasts until 2032.
DAV believes that there is still a need for improvement with regard to the so-called extrapolation method for the yield curve.