Multi-asset expansion as Swissquote goes down the real estate route

Continuing its multi-asset expansion, Swissquote’s Robo-advisor service now includes ETF and listed derivatives in the real estate sector that can be traded automatically

One of the electronic trading industry’s longstanding entities that is most committed to the multi-product cause is Switzerland’s largest online bank, Swissquote.

During the past few years, the firm has been committed to extensively expanding its large range of multi-asset trading functionality via organic growth into new market sectors and via mergers and acquisitions.

Today, Swissquote has entered another realm, this time real estate which is accessible to traders via the company’s Robo-advisor system which automates trades.

The Robo-Advisor invests in multi-asset strategies, and Swissquote states that alongside shares, fixed-income instruments and commodities, it is now also possible to invest in real estate. This allows Swissquote customers to further diversify their digital investment portfolio, meaning they can match their portfolio to their personal risk appetite more effectively.

The new real estate category includes ETFs and investment funds that focus on real estate, either directly or via listed companies active in the sector. This option also allows a preferred geographical location to be selected.

Swissquote launched its Robo-Advisory solution in 2010, making it the first electronic wealth manager in Switzerland. In doing so, Swissquote became a pioneer in the digital wealth management sector. The Robo-Advisor is based on the same algorithms as the Swissquote Quant Fund, which
received the Lipper Fund Award in 2016 for having the best performance over three years.

The company developed the user-friendly platform in order to make this innovative technology accessible to everyone.

During various discussions with Swissquote senior executives at the firm’s global headquarters in Gland, Switzerland, it has been very much apparent that the company focuses tremendously on ETFs and multi-asset trading of products and futures on listed derivatives exchanges, which is a direction that many firms in the FX industry have looked at going.

Since the company’s acquisition seven years ago of MIG Bank and ACM, the firm has expanded its proprietary trading environment into direct market access to equities, funds, bonds, warrants, and options & futures organically and via acquisition of its Swiss peers. The company also offers services designed specifically for asset managers and corporate clients, and has become extremely stable as a result of having a diversified product range.

On 15 March 2017, Swissquote acquired 750,000 treasury shares from Windel Investments Ltd which increased the percentage of Treasury shares to 7.67%.

Just six months later, it was anticipated that the company’s likelihood of increasing its benefit from Windel Investments’ activities in terms of commission and trading volume as well as having increase its number of treasury shares from 14,405,560 in the first half of 2016 until June 30, to 32,880,599 for the period between January 2017 and the end of June 2017. That is no mean feat.

These shares were initially transferred as part of the consideration for the acquisition of MIG Bank Ltd in 2013. The total consideration as well comprised of 210,000 stock options with a strike price of CHF 47.50 and an exercise period ending 26 September 2017. At 30 June 2017, the remaining treasury shares balance is primarily held for the purpose of covering employees share and option plans.

During Swissquote’s continual growth, the ability to operate as a Swiss bank as well as have an ever expanding capital base has enabled it to strike liquidity partnerships across all classes of the financial spectrum, an important move during the time at which many Tier 1 banks were moving away from the OTC world.

Due to the actions of some of the large OTC firms such as Swissquote (and some of the large British OTC companies), banks are now starting to realizethat this is an industry sector which provides enormous revenues and that the risk is not what it was when extending counterparty credit, largely due to the development of very sophisticated OTC trading environments and the links to raw materials, commodities, FX, metals and exchange traded futures that are now part and parcel of core business.

With a liquidity coverage ratio of 599% during the first half of 2017, Swissquote fared better than some of the Tier 1 banks which distribute FX liquidity.

Bearing this corporate ability to encapsulate various markets and provide direct access to a large number of asset classes in a method that outpaces traditional banks and stockbrokers, Swissquote is well poised to approach an automatically traded listed derivatives and ETFs on real estate companies and provide this opportunity to retail clients.

 

Read this next

Technology

TNS connects to Tel Aviv Stock Exchange (TASE) as market data vendor

“This latest exchange connection allows TNS to provide access to approved recipients, including exchange members and market data vendors. This project includes market data for TASE’s equities and increases the number of market data feeds we now offer globally.”

Executive Moves

Cowen Digital taps ex-Blockchain.com Taylor S. Cable to lead Europe and Asia operation

“Cowen Digital is a pioneer in delivering institutional grade access to the digital asset ecosystem and I am very excited to join the team at this pivotal time to grow our presence in Europe and Asia.”

Industry News

ASIC sues American Express Australia for lack of TMD on credit cards

“ASIC has now taken multiple actions under the design and distribution regime, including issuing over 20 interim stop orders. This regime turned a new page in the regulation of financial products in Australia and is intended to deliver better outcomes for consumers. It is a priority for ASIC to maximize these increased protections and see the long-term benefits of the DDO regime realized.”

Institutional FX

Eurex reports mixed volumes for November 2022

Deutsche Börse’s derivatives-focused exchange, Eurex today said its total traded derivatives contracts grew by 10 percent in November, from 68.6 million to 75.3 million compared to the same month last year.

Digital Assets

AAX’s Nigerian customers storm local office amid withdrawal halt

According to the Nigerian media, angry consumers of the troubled crypto exchange AAX had stormed its local office hoping they can get their money back after the firm halted operations earlier in November.

Digital Assets

As SPAC bubble bursts, Circle terminates its $9 billion merger with Concord

USDC stablecoin issuer, Circle has terminated its planned $9 billion SPAC merger with publicly traded blank-check company Concord Acquisition Corp.

Institutional FX

Integral reports lowest FX volume in two years

Foreign exchange trading volumes dropped in November across Integral’s trading platforms as currency markets saw a relatively quiet period after consecutive months of strong trading activity.

Technology

CDEX: Avelacom announces connectivity to Cboe Europe Derivatives

“We anticipate that many of our customers from Asia will be particularly interested in getting exposure to pan-European products via just one venue, which CEDX offers.”

Retail FX

BUX acquires Spanish Ninety Nine’s retail brokerage unit

“Thanks to this acquisition, Ninety Nine users will have access to a wide range of services provided by BUX, such as investing in Spanish, European and US stocks, ETFs, cryptocurrencies, fractional investing and the BUX Savings Plan.”

<