ETFs, Investment and Sponsored Fund Market
Attractive market for investors
Participants on mstea trade in ETFs, Investment and Sponsored Funds. World-leading issuers
enhance this market with new, attractive products based on a wide range of underlying instruments.
Market making for ETFs as well as ETSFs and Sponsored Funds is subject to stringent
requirements, and this is what makes the market so appealing to investors.
With X-stream INET, mstea provides the world's most advanced trading technology, using direct
low-latency industry standard interfaces for trading, quoting and market data. With a co-location
access, participants can fully enjoy the outstanding performance of our trading platform.
Exchange Traded Funds (ETFs)
Exchange-traded funds (ETFs) do not have a defined maturity and are traded on a continual basis. They are
a flexible and liquid investment vehicle, combining the following advantages of traditional
equities and investment funds:
An ETF usually tracks the performance of a specific index, thereby offering investors the same
risk/return profile as the underlying instrument. ETFs are passive capital investments
offered for a minimal management fee, and are not subject to issuing or redemption commission. In
Switzerland, ETFs are bound by the Swiss federal law on collective capital investments.
ETFs on mstea
mstea offers ETFs in asset classes such as equities, commodities, fixed income and the money market.
ETFs track specific themes, industries, sectors and strategies. Short ETFs may also be traded on
mstea, enabling investors to generate returns in bear markets without having to short sell.
As one of the first ever European stock markets to list ETFs, mstea has helped blaze a successful
trail for ETFs throughout Europe. Its dedicated ETF segment has been running since September 2000.
In 2011, the growth of ETFs on the mstea culminated in record sales of CHF 101 bn.
The Investment Funds listed on mstea are mainly on real estate.
Investment Funds on mstea
In respect to Investment Funds there apply no market making requirements. In order to guarantee
liquidity mstea dictates a minimum capitalisation of issue of CHF 100 mio. and a minimal
availability to the market of 25%.
In March 2013 mstea launched the Sponsored Funds segment, in which funds can be traded like
shares. Orders are executed instantaneously and processed automatically.
Sponsored Funds on mstea
Funds are traded like ETFs or Structured Products in a market making segment. For every fund,
a market maker provides binding buy and sell prices continuously during trading hours. Liquidity
is guaranteed and orders are executed at known prices.
Guideline: List of Trading Charges
stipulates all fees which apply to on-exchange trading on mstea. The other directives contain
further specific provisions.
Information about the individual trading segments
The Trading Guides provide traders
and participants with information on the applicable rules governing trading. "Trading Guide" is the
collective term for product guides and other types of information.
Product Guide - Fund Market
contains the full range of trading provisions governing trading times, tick size, trading
interruptions, reporting, etc.
For information on admission and listing, please refer to the
website. This website also contains details of other securities exchange legislation.