Swiss Stock Exchange and Nasdaq JV extends microwave data transmission

The Swiss Stock Exchange (SIX) has established a joint venture (RF Nordic Express AB) with Nasdaq. The new company will build and operate microwave routes for the transmission of market data from Stockholm to London.

The move follows the Swiss exchange taking a majority stake in 12H AG – the company which operates its microwave network – earlier this year. According to the exchange, the purchase makes it the operator of Europe’s largest microwave network. SIX spokesman Thomas Zeeb says the microwave network allows all Swiss Stock Exchange trading participants to benefit from low-latency market data transmission from Zurich to London, Frankfurt and Milan, as well as from Milan to Frankfurt and London.

Microwave technology enables the fastest transmission of market data between trading centers. Signals travel at the speed of light and are relayed through the air in the most direct way possible. This enables market participants to identify price movements and implement investment decisions as quickly as possible. As a result, risks can be managed more efficiently and SIX says the technology improves liquidity and tightens spreads, resulting in better execution for traders on its exchange.