41438dl SWX05 Inhalt e - SIX Group · 2010-02-11 · SWX Group Annual Report 2005 SWX Group 8

SWX

GROU

P A

nnua

l R

epor

t 2

00

5

SWX GROUP | Selnaustrasse 30 | Postfach | CH-8021 ZurichT +41(0)58 854 54 54 | F +41(0)58 854 54 55 | www.swxgroup.com

SWX GROUP: SWX Swiss Exchange, virt-x, Eurex, STOXX, EXFEED

TRADITION OF TECHNICAL INNOVATIONANNUAL REPORT 2005

41438dl_SWX05_US_e.indd 141438dl_SWX05_US_e.indd 1 6.4.2006 9:49:05 Uhr6.4.2006 9:49:05 Uhr

SWX Group 2005 2004 Change

Revenue* 379 494 358 821 + 5.8 %

Profit* 89 247 56 211 + 58.8 %

Cash flow* 129 220 76 806 + 68.2 %

Total assets* 545 106 436 375 + 24.9 %

Equity* 446 161 357 403 + 24.8 %

Staff numbers 469 467 + 0.4 %

* in CHF 1 000

SWX Swiss Exchange and virt-x 2005 2004 Change

Exchange trading turnover (in CHF m) 1 449 242 1 224 078 + 18.39 %

Number of transactions 17 954 179 14 697 404 + 22.16 %

Number of listed securities 7 956 5 888 + 35.12 %

SPI market capitalization (in CHF m) 1 174 753 886 748 + 32.48 %

Subsidiaries 2005 2004 Change

SWX Swiss Exchange (in CHF 1 000)

Revenue 358 359 342 440 +4. 7 %

Profit 76 715 42 594 + 80.1 %

virt-x (in GBP 1 000)

Revenue 45 023 39 466 + 15.6 %

Profit 3 126 2 244 + 39.3 %

EXFEED (in CHF 1 000)

Revenue 19 759 18 651 + 5.9 %

Profit 2 202 1 185 + 85.8 %

KEY FIGURES

ABACUS Wertpapier Handelsgesellschaft GmbH, Köln; ABN AMRO Bank N.V., Zweigniederlassung Zürich, Zürich; ABN AMRO Bank N.V. London Branch, London EC2M 4AA; AIG Private Bank Ltd., Zürich; Banca del Gottardo, Lugano; Bank am Bellevue, Küsnacht ZH; Bank CIAL (Schweiz), Basel; Bank Hofmann AG, Zürich; Bank Julius Bär & Co. AG, Zürich; Bank Leu AG, Zürich; Bank Sal. Oppenheim jr. & Cie (Schweiz) AG, Zürich; Bank Sarasin & Cie AG, Zürich; Bank Vontobel AG, Zürich; Banque Bonhôte & Cie SA, Neuchâtel; Banque Cantonale de Genève, Genève; Banque Cantonale Vaudoise, Lausanne; Banque Privée Edmond de Rothschild SA, Genève; Banque SCS Alliance SA, Zürich; Barclays Bank plc, London; Basler Kantonalbank, Basel; Bayerische Hypo- und Vereinsbank AG, München; BNP Paribas Private Bank (Switzerland) SA, Genève 11; BSI SA, Lugano; BZ Bank Aktiengesellschaft, Wilen b. Wollerau; Citigroup Global Markets Deutschland AG & Co. KGaA, Frankfurt

am Main; Cornèr Banca SA, Lugano; Coutts Bank von Ernst AG, Zürich; Crédit Agricole Cheuvreux S.A., Paris La Défense Cedex; CREDIT SUISSE, Zürich; Credit Suisse Securities (Europe) Ltd, London; Deutsche Bank (Schweiz) AG, Zürich; Deutsche Bank AG, Frankfurt; Deutsche Bank AG London Branch, Londo; Dresdner Kleinwort Wasser-stein Securities Ltd., London; Dreyfus Söhne & Cie AG, Banquiers, Basel; E. Gutzwiller & Cie, Banquiers, Basel; E*Trade Securities Limited, London; EFG Bank, Zürich; Ehinger & Armand von Ernst AG, Zürich; Exane SA, Paris;

Fimat International Banque SA (UK Branch), London; Fortis Bank Global Clearing N.V., Frankfurt Branch, Frankfurt; Goldman Sachs Bank AG, Zürich; Helvea SA, Genève 6; Hottinger & Cie, Banquiers, Zürich; HSBC Bank plc, Thames Exchange, London; HSBC Private Bank (Suisse) SA, Genève 3; Hypothekarbank Lenzburg, Lenzburg; Instinet Europe Limited, London; Instinet Europe Limited, London, Zürich Branch, Zürich; J. P. Morgan Securities Ltd., London; Joh. Berenberg, Gossler & Co. KG, Hamburg; Kepler Equities, Zurich Branch, Zürich; Kredietbank SA, Luxemburg; La Roche & Co Banquiers, Basel; Lehman Brothers International (Europe) Ltd., London; LGT Bank in Liechtenstein AG, Vaduz; Lombard Odier Darier Hentsch & Cie, Genève 11; Maerki Baumann & Co. AG, Zürich; Maple Bank GmbH, Frankfurt; Merrill Lynch Capital Markets AG, Zürich; Merrill Lynch International, London; Mirabaud & Cie, Banquiers, Genève 11; Morgan Stanley & Co. Intern. Ltd., London; NeoNet Securities AB, Stockholm; NZB Neue Zürcher Bank, Zürich; Pictet & Cie Banquiers, Genève 11; Privatbank IHAG Zürich AG, Zürich; Privatbank Von Graffenried AG, Bern 7; Rabobank Inter-national, Utrecht Branch, Utrecht; Rahn & Bodmer Banquiers, Zürich; Raiffeisen Centrobank AG, Wien; Rüd Blass & Cie AG, Zürich; Schroder & Co. Bank AG, Zürich; SG Private Banking (Suisse) SA, Genève 11; Société Générale, Paris – La Défense; Cedex, Société Générale Paris, Zweigniederlassung Zürich, Zürich; Société Générale S.A., London Branch, London; Susquehanna International Securities Ltd., Dublin 1; swissfirst Bank AG, Zürich; Swissnetbank.com AG, Zürich; Swissquote Bank, Gland; Timber Hill (Europe) AG, Zug; UBS AG, Zürich; Union Bancaire Privée, Genève 1; Van der Moolen Effecten Specialist BV, Amsterdam; Wegelin & Co. Privatbankiers, St. Gallen; Winterflood Securities Ltd., London; Zürcher Kantonalbank, Zürich; Aargauische Kantonalbank, Aarau; AB FIN S.A., Paradiso; ABN AMRO Bank (Schweiz), Zürich; ACH – Securities SA, Genève; Adler & Co. Privatbank AG, Zürich; AKB Privatbank Zürich AG, Zürich; Alpha RHEINTAL Bank, Berneck; Amas Bank (Schweiz) AG, Zürich; Amtsersparniskasse Schwarzenburg, Schwarzenburg; Amtsersparniskasse Thun, Thun; ANGLO IRISH BANK (SUISSE) SA, Genève 1; Anker Bank, Zürich; Appenzeller Kantonalbank, Appenzell; Arab Bank (Switzerland) Ltd., Zürich; Arbinter-Omnivalor SA, Société financière d’arbitrage int., Genève; Arbitrium Finanz AG, Zürich; ARVEST Privatbank AG, Pfäffikon SZ; Arzi Bank AG, Zürich; Aston Bond SA, Lugano; ATAG Asset Management AG, Bern; Atlantic Vermögensverwaltungsbank, Zürich; Atlas Capital SA, Genève; Bâloise Bank SoBa, Solothurn; Banca Aletti & Cie (Suisse) SA, Lugano; Banca Arner SA, Lugano; Banca Commerciale Lugano SA, Lugano; Banca del Ceresio SA, Lugano; Banca dello Stato del Cantone Ticino, Bellinzona; Banca del Sempione, Lugano; Banca di Credito e Commercio SA, Lugano; Banca Euromobiliare (Suisse) SA, Lugano; Banca GESFID, Lugano; Banca Intermobiliare di Investimenti, e Gestioni (Suisse) SA, Lugano; Banca Julius Baer (Lugano) SA, Lugano; Banca Popolare di Sondrio (Suisse), Lugano; Banca Privata Edmond de Rothschild Lugano SA, Lugano; Banca Unione di Credito (BUC), Lugano; Banco Santander Central Hispano (Suisse) S.A., Genève 1; Bank CA St. Gallen, St. Gallen; Bank Coop AG, Basel; Bank EEK, Bern 7; Bank Frey & Co. AG, Zürich; Bank für Tirol und Vorarlberg Akti-engesellschaft, Innsbruck, Zweigniederlassung , Staad, Staad; Bank Hapoalim (Schweiz) AG, Zürich; Bank Hugo Kahn & Co. AG, Zürich; Bank im Thal, Balsthal; Bank in Zuzwil, Zuzwil SG; Bank Jura Laufen, Delémont; Bank Leerau, Kirchleerau; Bank Leumi le-Israel (Schweiz), Zürich; Bank Linth, Uznach; Bank Morgan Stanley AG, Zürich; Bank of New York – Inter Maritime Bank, Geneva, Genève 1; Bank Sparhafen Zürich, Zürich; Bank Thalwil, Thalwil; Bank Thur, Ebnat-Kappel; Banque Amas (Suisse) SA, Genève 1; Banque Audi (Suisse) SA, Genève 12; Banque Banorient (Suisse), Genève 3; Banque Baring Brothers (Suisse) SA, Genève 3; Banque Bauer (Suisse) SA, Genève; Banque Bénédict Hentsch & Cie SA, Genève 11; Banque Cantonale de Fribourg, Fribourg; Banque Cantonale du Jura, Porrentruy; Banque Cantonale du Valais, Sion; Banque Cantonale Neuchâteloise, Neuchâtel; Banque Cramer & Cie SA, Genève 11; Banque de Commerce et de Placements SA, Genève 1; Banque de Dépôts et de Gestion, Lausanne; Banque de Gestion Financière, Zürich; Banque Degroof (Suisse) SA, Genève 1; Banque de la Méditeranée (Suisse) SA, Genève 1; Banque de Patrimoines Privés Genève BPG SA, Genève 25; Banque Diamantaire (Suisse), Genève; Banque Franck, Galland & Cie SA, Genève 3; Banque Jacob Safra (Suisse) SA, Genève 11; Banque Jenni & Cie. SA, Basel; Banque Julius Baer & Cie. SA, Genève 3; Banque MeesPierson BGL SA, Zürich; Banque Pasche SA, Genève 11; Banque Piguet & Cie SA, Yverdon-les-Bains; Banque Safdié SA, Genève 11; Banque Syz & Co. SA, Genève; Banque Thaler SA, Genève 3; Banque Vontobel Genève SA, Genève; Bantleon Bank AG, Zug; Barclays Bank (Suisse) SA, Genève 3; Basellandschaftliche Kantonalbank, Liestal; Baumann & Cie. Banquiers, Basel; BBO Bank Brienz Oberhasli, Brienz; BBVA Privanza Bank (Suiza) SA, Zürich; BEKB | BCBE, Bern; Berenberg Bank (Schweiz) AG, Zürich; Bernerland Bank, Sumiswald; Bezirksspar-kasse Dielsdorf, Dielsdorf; Bezirkssparkasse Uster, Uster; BGG Banque Genevoise de Gestion, Genève; BGP Banca di Gestione Patrimoniale SA, Lugano; BHF-Bank (Schweiz) AG, Zürich; Biene – Bank im Rheintal, Altstätten SG; BIPIELLE Bank (Suisse), Lugano; BLP Banque de Portefeuilles, Lausanne; BNP PARIBAS (SUISSE) SA, Zürich; Bondpartners SA, Lausanne; Bordier & Cie, Banquiers privés, Genève 11; Bovay & Partenaires SA, Lausanne; Bridport & Cie SA, Genève 3; BS Bank Schaffhausen, Neuhausen am Rheinfall; C.I.M Banque, Genève; Caisse d’Epargne d’Aubonne, Aubonne; Caisse d’Epargne de Courtelary, Courtelary; Caisse d’Epargne de la Ville de Fribourg, Fribourg; Caisse d’Epargne de Nyon, Nyon; Caisse d’Epargne de Prez, Corserey et Noréaz, Prez-vers-Noréaz; Caisse d’Epargne de Siviriez, Siviriez; Caisse d’Epargne du District de Cossonay, Cossonay; Caisse d’Epargne du District de Vevey, Vevey 1; Caisse d’Epargne et de Prévoyance SA, Yverdon-les-Bains; Caixa Bank Banque Privée (Suisse) SA, Genève; CAT Finance AG, Zürich; Citation SA, Zürich; Citibank (Switzerland), Zürich; Clariden Bank, Zürich; Clientis AG, Bern; Clientis Bank Huttwil, Langenthal; Clientis Regiobank Männedorf, Männedorf; Commerzbank (Schweiz) AG, Zürich; Compagnie Bancaire Espirito Santo SA, Lausanne; Crédit Agricole (Suisse) SA, Zürich; Crédit Mutuel de la Vallée SA, Le Sentier; Credito Privato Commerciale SA, Lugano; CREDIT SUISSE FIDES, Zürich; Credit Suisse Private Advisors, Zürich; Daiwa Securities SMBC Europe Limited, London, Geneva Branch, Genève; DC Bank Deposito-Cassa der Stadt Bern, Bern; Decova SA, Genève; Deka (Swiss) Privatbank AG, Zürich; Delen (Suisse) SA, Genève 11; Dexia Privatbank (Schweiz) AG, Zürich; Dominick Company AG, Privatbank, Zürich; Dresdner Bank (Schweiz) AG, Zürich; DRYDEN BANK SA, Genève 1; DZ PRIVATBANK Schweiz, Zürich; EB Entlebucher Bank, Schüpfheim; EFG Bank European Financial Group, Genève 2; EGOBANK SA, Lugano; Ersparnisanstalt der Stadt St. Gallen, St. Gallen; Ersparnisanstalt Oberuzwil, Oberuzwil; Ersparnisgesellschaft Küttigen, Küttigen; Ersparniskasse Affoltern i.E., Affoltern im Emmental; Ersparniskasse des Amtsbezirks Interlaken, Interlaken; Ersparniskasse Erlinsbach, Erlinsbach; Ersparniskasse Rüeggisberg, Rüeggisberg; Ersparniskasse Schaffhausen, Schaff-hausen; F. van Lanschot Bankiers (Schweiz) AG, Zürich; Fibi Bank (Schweiz) AG, Zürich; FIDEURAM Bank (Suisse) SA, Lugano; Fidurhône SA, Genève 3; Finacor SA, Basel; Financière Mermod SA, Lausanne; Financière SBA (Suisse) SA, Genève 3; Finter Bank Zürich, Zürich; Glarner Kantonalbank, Glarus; Gonet & Cie, Banquiers, Genève 11; Graubündner Kantonalbank, Chur; GRB Glarner Regionalbank Schwanden, Schwanden; Habib Bank AG Zürich, Zürich; Hardcastle Trading AG, Rapperswil; Heritage Bank & Trust, Genève 3; HSBC Guyerzeller Bank AG, Zürich; HYPOSWISS Privat-bank AG, Zürich; IBI Bank AG, Zürich; IMC International Marketmakers Combination BV, Amsterdam, Zweigniederlassung Zug, Zug; ING BANK (Switzerland) Ltd, Genève 6; Institut de Crédit et de Dépôts S.A., – ICRED S.A., Lugano; Investec Bank (Switzerland) AG, Zürich; Israel Discount Bank (Switzerland) SA, Genève 3; ITAG Vermögensverwaltung, Basel; J. P. Morgan (Suisse) SA, Genève 1; Jefferies (Switzerland) Ltd., Zürich; Jyske Bank (Schweiz), Zürich; Kredietbank (Suisse) SA, Genève 11; Landolt & Cie, Banquiers, Lausanne; Lavoro Bank AG, Zürich; LB (Swiss) Privatbank AG, Zürich; LBBW Schweiz AG, Zürich; Leihkasse Stammheim, Oberstammheim; Lemanik SA, Lugano; LGT Bank (Schweiz) AG, Zürich; Lienhardt & Partner Privatbank Zürich AG, Zürich; Lloyds TSB Bank plc, Zürich; Luzerner Kantonalbank, Luzern; M.M. Warburg Bank (Schweiz) AG, Zürich; Mangold Management Co. Ltd., Lausanne; MediBank, Zug; Merrill Lynch Bank (Suisse) SA, Genève 3; Merrill Lynch Pierce Fenner & Smith Inc.,, Représentation de Genève, Genève 3; MFC Merchant Bank SA, Herisau; MIGROSBANK, Zürich; Mirelis InvesTrust SA, Genève; Mitsubishi Tokyo Wealth Management Ltd., (Switzerland), Genève; Mizuho Bank (Schweiz) AG, Zürich; Morval & Cie SA, Genève; Mourgue d’Algue & Cie, Banquiers, Genève 3; Neue Aargauer Bank, Aarau; Nidwaldner Kantonalbank, Stans; Nomura Bank (Switzerland) Ltd., Genève 11; Nordea Bank SA Luxemburg, Zweigniederlassung Zürich, Zürich; NPB Neue Privat Bank AG, Zürich; Obersimmentalische Volksbank, Zweisimmen; Obwaldner Kantonalbank, Sarnen; OZ Bankers AG, Pfäffikon SZ; OZ Holding, Pfäffikon SZ; PETERCAM Banque Privée (Suisse) SA, Centre Swissair, Genève 15 Echange; Pictet Asset Management SA, Genève, Genève; PKB Privatbank AG, Lugano; Plenum Securities AG, Zürich; Privatbank Bellerive AG, Zürich; Private Client Bank, Zürich; Quantus Asset Management AG, Glattzentrum bei ; Wallisellen; RAS Private Bank (Suisse) S.A., Lugano; RBA-Zentralbank, Bern; Regiobank Solothurn, Solothurn; Reichmuth & Co., Privatbankiers, Luzern 7; Reyl & Cie. SA, Genève; Rothschild Bank AG, Zürich; Royal Bank of Canada (Suisse), Genève 11; Russische Kommerzial Bank AG, Zürich; Sagefor SA, Genève; Sallfort AG, Basel; Sanpaolo Bank (Suisse) SA, Lugano; SB Saanen Bank, Saanen; Schaff-hauser Kantonalbank, Schaffhausen; Schweizer Verband der Raiffeisenbanken, St. Gallen; Schwyzer Kantonalbank, Schwyz; Scobag AG, Basel; SEB PRIVATE BANK SA, Luxembourg, Genève; Sella Bank AG, Zürich; Selvi & Cie SA, Genève 11; SG Private Banking (Lugano-Svizzera) SA, Lugano; SIS SegaInterSettle AG, Zürich; SKANDIFINANZ BANK AG, Zürich; SLB Commercial Bank, Zürich; Società Bancaria Ticinese, Bellinzona; Société Bancaire Privée S.A., Genève 3; Sparcassa, Wädenswil, Wädenswil; Spargenossenschaft Mosnang, Mosnang; Sparkasse des Sensebezirks, Tafers; Sparkasse Engelberg, Engelberg; Sparkasse Horgen, Horgen; Sparkasse Küsnacht ZH, Küsnacht ZH; Sparkasse Oberriet, Oberriet; Sparkasse Oftringen, Oftringen; Sparkasse Schwyz, Schwyz; Sparkasse Wiesendangen, Wiesendangen; Sparkasse Zürcher Oberland, Wetzikon ZH; Spar- und Leihkasse Bucheggberg, Lüterswil; Spar- und Leihkasse Frutigen, Frutigen; Spar- und Leihkasse Gürbetal, Mühlethurnen; Spar- und Leihkasse Kirchberg, Kirchberg; Spar- und Leihkasse Münsingen, Münsingen; Spar- und Leihkasse Riggisberg, Riggisberg; Spar- und Leihkasse Steffisburg, Steffisburg; Spar- und Leihkasse Thayngen, Thayngen; Spar- und Leihkasse Wynigen, Wynigen; St. Galler Kantonalbank, St. Gallen; Swiss Capital Alternative Investments AG, Zürich; Swiss Investment Corporation Ltd., c/o Profilinvest, Genève; Swissregiobank, Gossau SG; Synthesis Bank, Genève 1; Tareno AG, Basel; Thurgauer Kantonalbank, Weinfelden; Trafina Privatbank AG, Basel; Trans Fiduciaire S.A., Lugano; Triba Partner Bank, Triengen; UBS Swiss Financial Advisers AG, Zürich, Zürich; UEB (Switzerland), Zürich; UFJ Bank (Schweiz) AG, Zürich; UniCredit (Suisse) Bank SA, Lugano; United Bank AG (Zürich), Zürich; United Mizrahi Bank (Schweiz) AG, Zürich; Urner Kantonalbank, Altdorf UR; Valiant Bank, Bern; Valiant Privatbank AG, Bern; Volksbank Bodensee AG, St. Margrethen; Vorarlberger Landes- und Hypothekenbank, St. Gallen; VP Bank (Schweiz) AG, Zürich; Zarattini & Co. SA, Lugano; ZLB Zürcher Landbank, Elgg; Zuger Kantonalbank AG, Zug

Leim

PARTICIPANTS


3ContentsSWX Group Annual Report 2005

Editorial 6

SWX Group 8SWX Group – laying the basis for new markets 10 New accounting standards 10 Cost reductions 11 Quotematch launched 11 Services for the financial centre 11 SWX sponsoring the Swiss Finance Institute (SFI) 12 SWX Group organizational structure 13 SWX Group business areas and markets 14

Core business 16Core business – two cash markets under one management 18 More exacting requirements 18 Agreement with the FSA 18 The SWX platform – looking back on 10 years’ dependable service 19 Expanded SWX trading system 20 The Swiss Value Chain – a proven performer 20 TIF simplifies SNB reporting requirements 21 Volatility, a new addition to the SWX index family 22 New classification standard for sectors and segments 23 Expanded membership 24 Stock markets performing well 25 SMI shares traded as European blue chips 25 Sector-focused trading on SWX 25 New segment for foreign blue chips 26 SWX derivatives market set for further growth 26 Expanded markets for bonds 27 Swiss franc bonds 27 International bonds 28 Trading segment for unlisted international bonds 29 Two markets for ETFs 29 ETFs on the SWX Swiss Exchange 29 ETFs on virt-x 30Quotematch – a milestone in derivatives trading 31 Potential for securitized derivatives in Europe 32

Companies 34SWX Swiss Exchange – Switzerland’s securities exchange 36 Supervision and enforcement of issuers’ obligations 41virt-x – an innovative and international presence 44EXFEED – growing demand for raw data 47Eurex – moving further ahead 50STOXX Limited – the leader across Europe 54

Annual financial statements 56

Annex 104

Glossary 128

41438dl_SWX05_Inhalt_e.indd 3 6.4.2006 13:42:37 Uhr

OUR STRENGTHS

The SWX Group is one of Europe’s foremost providers of securities exchange services, and promotes the integration and efficiency of

global financial markets. It is dedicated to serving the Swiss financial centre, which is a linchpin of the country’s economy and also

plays a leading international role in individual market sectors.

With the launch of electronic trading ten years ago, SWX made the Big Bang a reality in Switzerland’s financial marketplace. This

pioneering move also marked the beginning of a period of spiralling growth for the securities industry, a development in which SWX

has played a prominent part. The outstanding features of SWX are a tradition of technical innovation, internationality, Swissness, self-

regulation and an ability to shape the future. In this Annual Report, five of our people explain what these themes mean to them and

their colleagues. Their comments can be found on the pages between chapters.

Wolfram Wisskirchen


5

Tradition of technical innovation – Wolfram Wisskirchen, page 8

Internationality – Emma Vick, page 16

Swissness – Jacqueline Morard, page 34

Self-regulation – Roland Maurhofer, page 56

Shaping the future – Daniel Risold, page 104

Daniel Risold Emma Vick

Roland MaurhoferJacqueline Morard

Our strengthsSWX Group Annual Report 2005


“ The technical integration of the

SWX trading structure into the

clearing and settlement process

showed the way forward ten years

ago, and still does today. ” Jacques de Saussure, Vice Chairman of the Board of Directors, Chairman a. i.


7EditorialSWX Group Annual Report 2005

Dear Reader

The introduction of electronic securities trading in Switzer-land ten years ago marked the beginning of a success story which has continued to this day. The SWX Group registered another excellent financial performance in 2005. Our balance sheet is sound and we are prepared for difficult market phases if necessary. Last year, the Group made its mark above all in the regulatory field and positioned itself as an attractive partner for domestic and foreign issuers.

As the organizer of a financial marketplace, the SWX Group has a vested interest in an efficiently regulated securities market. Unlike official regulatory agencies, it bears the eco-nomic consequences of misconceived regulation itself. It therefore strives to ensure a balanced and internationally competitive system of market supervision that meets the needs of all participants. From this perspective, its multi-layered regulation concept has proved its worth.

· Firstly, market players must be able to assert their rights and obtain legal redress themselves. They are provided with the necessary instruments for this purpose, including a body of information, contract and procedural laws in line with present-day practice.

· Secondly, market supervision is conducted within the framework of self-regulation. Thanks to the market proxim-ity and authority it enjoys under this system, SWX can make adjustments to the Listing Rules rapidly and exploit new opportunities promptly. Self-regulation is therefore a guarantee for meaningful supervision of securities trading without the excesses that sometimes seem to be emerging in the EU. Another positive aspect is that it helps to distin-guish the Swiss financial marketplace from other locations.

· Lastly, the authorities must take the regulatory measures necessary in areas where market participants and self-regulation are unable to eliminate irregularities. Market regulation should neither reduce liquidity nor increase trans action costs, at least in the medium and long term.

Ten years have passed since Switzerland’s first fully auto-mated stock trading system was inaugurated on 8 December 1995. The migration of all categories of securities to the electronic platform was completed on 16 August 1996. The technical integration of the SWX trading structure into the clearing and settlement process showed the way forward then, and still does today. The system has proved to be very robust and has contributed to the good Swiss quality image. In November 2005, shortly before the tenth anniversary of electronic trading, SWX launched Quotematch. This provides the Group with an additional trading system that signifi-cantly expands the capacity previously available to market participants. SWX has once again demonstrated its innova-tive prowess by implementing the Quotematch project. For the time being, the new platform will be used for trading in securitized derivatives. Preparations are under way for a pos-sible extension to other markets which lend themselves to trading on Quotematch.

With its groundbreaking achievements in the areas of tech-nology and regulation over the past ten years, the SWX Swiss Exchange has played a major role in positioning Switzerland as a high-calibre national and international financial market-place. The representatives of banks and industrial firms on the Board of Directors and the Admission Board, as well as the members of the various user commissions, have all been instrumental in this success. But a special word of thanks must also go to our employees: they are the people who, with care and great professionalism, have implemented our stra-tegic goals and operating requirements for the benefit of the financial centre as a whole. Last but not least, I would like to thank Reto Francioni, the former Chairman of the Board, for his work during the past three and a half years. We wish him every success in the new assignment which he took up on 1 November 2005.


8

“ In comparison with other countries,

Switzerland developed leading-edge

skills in the area of electronic

exchanges with integrated clearing

and settlement – for derivatives too

– at a very early stage. ” Wolfram Wisskirchen, CEO, SWX Swiss Exchange UK, Vice President, Information Technology Division


SWX Group

Tradition of technical innovation

The first electronic bourse incorporating integrated clearing and settlement facilities was the Swiss Options and Financial

Futures Exchange (SOFFEX), which started trading in 1988. Ten years ago, on 8 December 1995, electronic stock trading was

introduced in Switzerland – initially for foreign shares. The migration of the larger segments followed in August 1996. The

technical integration of the SWX trading structure into the clearing and settlement process showed the way forward then, and

still does today. The system has proved to be very robust. On 11 November 2005, shortly before the anniversary date,

SWX launched Quotematch, a platform that significantly enhances the performance features of the proven SWX trading

system and expands capacity many times over. It allows efficient dealing in products for which new quotes are marshalled

into the exchange system in quick succession. SWX has once again demonstrated its innovative prowess with the launch

of Quotematch.


took effect on 1 January 2005. Together with US GAAP, the IFRS is one of the two standards required for companies wishing to list their securities in the main segment of the SWX Swiss Exchange.

New accounting standardsThe Board of Directors has decided to adopt the Interna-tional Financial Reporting Standards (IFRS) as the basis for the Group’s annual financial statements, even though SWX is not obliged to do so as an unlisted company. The change-over from Swiss GAAP ARR to the new accounting standards

SWX GROUP – LAYING THE BASIS FOR NEW MARKETSThe SWX Group finished the 2005 financial year with a profit of CHF 89.2 million, beating the previous year’s figure once

again. This excellent performance was due to a strong recovery in equity trading and the fact that the 2004 results had

been adversely affected by exceptional costs in connection with the Eurex initiative in the United States. The 15 % decline

in revenue in the derivatives trading segment, attributable to the adjustment in SWX’s share of Eurex Group earnings from

20 % to 15 %, was partly offset in the year under review.

“ In 2005, the SWX Group

strengthened its position and

further improved its service

offering in order to maintain its

competitive edge in Europe

and safeguard the interests of

the Swiss financial marketplace.” Jürg Spillmann, Head of the Group Executive Committee


11SWX GroupSWX Group Annual Report 2005

Quotematch launchedFar-sighted investing activities are essential for the SWX Group to maintain its solid position in the years ahead. The new Quotematch system, which was successfully introduced in November, supplements the existing platform with a quote / order-trading engine. This allows the high number of quotes generated by market makers to be processed and matched with the orders coming in over the existing plat-form, without dispensing with the proven clearing and settle-ment infrastructure. Quotematch has created the conditions for substantial growth in all markets which lend themselves to market making.

For the time being, the SWX Swiss Exchange is using the business potential opened up by Quotematch for securitized derivatives. SWX regards the standardized derivatives mar-ket, and primarily trading in securitized derivatives and structured products, as one of the most important sources of growth for securities trading. Consequently, it is also consid-ering whether to position Quotematch as an attractive deriva-tives platform for foreign issuers, underlyings and trading participants. The takeover of the Bremen Stock Exchange (BWB) early in July 2005 should also be seen against this background, bearing in mind that Germany is Europe’s big-gest and fastest growing derivatives market.

Services for the financial centreAs the securities exchange organization for the Swiss finan-cial marketplace, SWX will continue to focus on securities trading in the future. The SWX Group, SIS Group and Telekurs have been cooperating with one another very closely for years. Their integrated trading, clearing, settlement and cus-tody system known as the Swiss Value Chain is world-class in terms of service offering, quality, risk profile and value for money. The possibility of making greater use of synergies is back on the agenda again.

SWX Group companies strive to ensure that the services they offer in the interest of the Swiss financial marketplace are attractively priced and optimally adapted to customer needs. They are constantly on the lookout for improvements in fee models and tie-in costs, in order to remain competitive with other European providers. Prices were adjusted in numerous areas of business in recent months, including listing charges for derivatives, the investment protection fee and charges for international bonds. However, pricing should always be such as to allow the companies to provide all the services expected of them, even during unfavourable market periods.

Cost reductionsCost-cutting measures also contributed to the very good financial results in our core business. In order to be better prepared for a possible downturn in securities trading – not-withstanding the Group’s good earnings position at present – the Board of Directors and the Executive Committee launched an economy drive aimed at saving CHF 20 million annually, i. e. 7.5 % of total costs. Top management decided to take these measures in a period marked by stable eco-nomic conditions and improved job prospects in the finan-cial services industry. A delay in implementing them would have increased the risk that they might coincide with a cyclical downswing and not have the desired effect.

Unfortunately, 57 jobs also had to go as part of the economy programme. The employees concerned were informed in October, and offered fair and generous severance terms as well as professional support to help them find another job or give their career a new direction. The one-off costs of the social plan amounted to CHF 5 million. It was and is a major concern of top management that the SWX Group should remain competitive on the labour market. With a headcount of 442 (421 full-time posts) after this reorganization, the Group’s size at end-2005 is appropriate for implementing corporate strategy. On the operational front, the measures will have no negative repercussions for customers.

12 SWX GroupSWX Group Annual Report 2005

SWX sponsoring the Swiss Finance Institute (SFI)

The SWX Group is committed to providing project-linked support for training, further education and research in the area of financial markets. This is done by

organizing scientific congresses (e.g. in cooperation with the Swiss Society for Financial Market Research) and supporting young economists and jurists who

choose a relevant stock market theme as their thesis subject, or present a research project of particular relevance to the work of the SWX Swiss Exchange.

Last year, the opportunity arose for SWX to take part in a nationwide project for education and research in the financial sector, involving the creation of a Swiss

Finance Institute (SFI). In keeping with the object of its parent association, which is to advance the cause of the Swiss financial marketplace, the SWX Group

contributed CHF 5 million to this project and became one of the main sponsors of the new institute. The SFI commenced operations in January 2006.

The financial sector is a lynchpin of the Swiss economy. The fact that clients around the globe entrust over a quarter of all foreign-managed assets to Swiss

banks is a tremendous success story in itself, but it also represents a challenge. If the Swiss financial centre wants to stay in the premier league, it must be

able to provide a solid scientific basis as well as the requisite training and continuous education opportunities.

The SFI is first and foremost a combination of existing skills and strengths. It draws on the resources of four leading institutions in the fields of teaching,

research and education, all of which have an excellent track record:

· NCCR FINRISK: The National Center of Competence in Research (NCCR) is a research programme of the Swiss National Science Foundation, focusing on

financial valuation and risk management. It was set up in 2001 and is supported by the Universities of Basel, Geneva, Lausanne, Lugano, Neuchâtel and

St. Gallen.

· Banking and Finance Foundation of the University of Zurich: This centre of competence in teaching, research and services in the banking and financial

sectors was created by five banks in 1997. It is attached to the Economics Faculty of the University of Zurich and supports outstanding achievements in

financial market research.

· Swiss Banking School: Established by the Swiss banks as a non-profit foundation in 1987, the Swiss Banking School offers executives in the financial sector

a first-class programme of continuous education. It has been working closely with FAME since 2004.

· FAME: The International Center for Financial Asset Management und Engineering (FAME) is a private foundation established by leading banks and technology

companies in 1996. It is attached to the Universities of Geneva and Lausanne, and engages in research, doctoral programmes, executive education and

knowledge transfer.

The Swiss Banking School and FAME merged at the beginning of 2006 to form the Swiss Finance Institute, while NCCR FINRISK and the Banking and Finance

Foundation of the University of Zurich kept their existing names.

The SFI is an ideal instrument for encouraging top-level teaching and research activities, and providing excellent professional education programmes for bank

executives.

On 8 December 2005, it was ten years to the day that elec-tronic trading – initially for foreign shares – made its debut in Switzerland. The migration of the larger segments fol-lowed in August 1996. The Swiss securities market, which had been spread over seven floor exchanges throughout the country, was henceforth unified on a single integrated elec-tronic platform. These ten years have seen far-reaching changes in securities trading in Switzerland and abroad, and partly in the corporate governance of exchanges too. During this period, the SWX Swiss Exchange has played a central role in defending the interests of the Swiss financial centre.

An image analysis commissioned from Demoscope in 2005 shows that our Group enjoys a high level of confidence in Switzerland today, and that our work is greatly appreciated. In particular, SWX activities in the technology and regulatory fields are highly esteemed.



SWX Group organizational structure

The SWX Swiss Exchange Association holds all the shares of the SWX Group, which as a holding company does not engage in business activities. Members of the Association are financial intermediaries, who are also participants of the SWX Swiss Exchange.

The SWX Group holds all the capital of the SWX Swiss Exchange and EXFEED Ltd, and a 33 % stake in STOXX Limited. For its part, the SWX Swiss Exchange holds all the capital of virt-x Ltd as well as 50 % of the shares and – on the basis of no-par dividend-right certificates and a voting pool agreement – an interest of 15 % (from the 2005 business year onwards) in the profits of Eurex Zurich Ltd.

CORPORATE STRUCTURE OF THE SWX GROUP

SWX Swiss Exchange Association

SWX Group

EXFEED Ltd STOXX LimitedSWX Swiss Exchange AG

Eurex Zurich Ltdvirt-x Ltd

100 %

100 % 33 %100 %

100 % 50 %

Corporate structure of the SWX Group since 1 July 2003Source: SWX Group


14 SWX GroupSWX Group Annual Report 2005

SWX Group business areas and markets

As a securities exchange organization, the SWX Group primarily serves the Swiss financial marketplace. Its core business therefore focuses on the areas of admission, securities trading and market information. On top of this come the UK-regulated cash market and the relevant market data distribution through virt-x. The core business is essentially conducted by the SWX Swiss Exchange, virt-x and EXFEED.

The standardized derivatives and European indices segments are covered by Eurex and STOXX, which are partly owned subsidiaries of the SWX Group and generate a sizeable portion of the Group’s total profit. The Group’s interests in these companies are safeguarded by SWX representatives on their supervisory and management boards.

The following chart provides an overview of core and non-core activities, as well as the companies which conduct them.

CORE BUSINESS AND OTHER ACTIVITIES OF THE SWX GROUP

Admission Securities trading Market information

SWXSwiss Exchange

Admission CH-regulated cash market

Securitizedderivatives

SWXmarket data

Nationalindices

virt-x UK-regulatedcash market

EXFEED SWXmarket data

virt-xmarket data

Eurex Standardizedderivatives

STOXX Europeanindices

Source: SWX Group

Core business Other activities



SWX Group markets

Supervised by the Swiss Federal Banking Commission

Equity trading on the SWX Swiss Exchange In addition to Swiss companies that want to enjoy the advantages offered by their home market, the SWX equity market is suitable for foreign companies operating in the sectors that are of great importance to Switzerland’s highly specialized wealth and asset management industry. Foremost among these are financial services, technology, pharmaceuticals, biotechnology and medical technology. Because of the importance of these sectors, great attention is paid to the indices which feature their shares.

Secondary listings The SWX Swiss Exchange offers trading facilities for the shares of about 108 foreign companies (at 31.12.2005) which are listed on another national exchange. These issuers have gone through a listing procedure at SWX and are subject to certain disclosure and reporting requirements.

Sponsored SegmentThe SWX Swiss Exchange offers trading facilities for the shares of over 61 foreign companies which are listed on another stock exchange with equivalent listing requirements to those in Switzerland. Unlike a secondary listing, companies whose shares are traded in the Sponsored Segment do not go through a listing procedure. Issuers are mainly leading international firms in North America, Germany, the Netherlands and Japan.

DerivativesSecuritized derivatives are listed and traded in the derivatives segment of SWX. A total of 6246 derivative instruments offered by 27 issuers were listed on SWX at end-2005, ranging from plain vanilla warrants to certificates and structured products.

Standardized derivatives (Eurex) Eurex is now the world’s leading market for the trading and clearing of derivatives, and boasts the largest network of members around the globe. The Swiss segment of Eurex trading is overseen by the SWX Swiss Exchange.

Bond market The bond market of the SWX Swiss Exchange covers the entire range of debt securities: straight bonds, zero bonds, variable-rate bonds and convertibles.

Swiss franc bondsThe SWX Swiss Exchange is the home market for Swiss franc bonds issued by domestic and foreign borrowers:

Swiss BondsListed Swiss franc bonds whose issuers have their legal domicile in Switzerland or the Principality of Liechtenstein.

Foreign BondsListed Swiss franc bonds whose issuers have their legal domicile outside Switzerland or the Principality of Liechtenstein.

International BondsThe trading segment for international bonds at SWX comprises debt securities which are issued by foreign borrowers and denominated in a foreign currency. To be eligible for trading, such bonds must either be listed on the SWX Swiss Exchange or on a bourse recognized by SWX as having comparable standards to its own.

ETFsETFs (Exchange Traded Funds) are investment funds that are listed on the exchange and – unlike traditional investment funds – are traded permanently during exchange hours, in the same way as shares.

Swiss franc repo marketThe Swiss franc repo market has existed since 1999. Today, around 137 participants in Switzerland and abroad operate in this liquid market. The Swiss National Bank uses the Swiss franc segment of Eurex Repo for purposes of money supply management. The operator of this segment is obliged to provide Switzerland’s Federal Banking Commission with information.

Supervised by the Financial Services Authority

Swiss blue chip marketTrading in SMI stocks takes place through the London-based virt-x exchange. virt-x combines Switzerland’s regulatory framework for issuers with a presence in London, where global investment banking players operate under the supervision of the FSA.

EU-regulated Market SegmentThe EU-regulated Market Segment is a regulated market in accordance with EU directives on the subject. It complies with the relevant capital market regu-lations stipulated in the Prospectus and Market Abuse Directives for the EU and EEA.

UK-Exchange-regulated Market SegmentThe UK-Exchange-regulated Market Segment is subject exclusively to the Swiss listing regime in effect at SWX.

Pan-European blue chip market247 European blue chips can be traded on a cross-border basis at virt-x.

ETFsvirt-x provides issuers with a low-cost solution for the admission of ETFs to trading in the United Kingdom. At 31 December 2005, 18 ETFs were being traded in 4 currencies at virt-x.


16

“ The SWX Group operates a Swiss-

regulated exchange as well as

one that is subject to British super-

vision. Consequently, it is the

only European provider of secur-

ities exchange services to operate

cash markets within and outside

the EU.” Emma Vick, Deputy CEO, virt-x


Internationality

The SWX Group is active in the Swiss domestic capital market as well as in London, Europe’s largest financial metropolis. With

the SWX Swiss Exchange in Zurich and virt-x in London, it is in the unique position of operating two discreet securities markets,

one under Swiss supervision and the other under British supervision. A further significant international market made available

by the SWX Group to Switzerland’s financial centre is Eurex, the world’s largest exchange for standardized derivatives.

Core business


The SWX Group is the securities exchange organization of the Swiss financial centre, offering a broad range of services

in an efficient regulatory environment. In order to reinforce its market position in internationally traded instruments,

the Group is also present in London, Europe’s largest financial centre, via virt-x.

Operating a proprietary securities exchange in Switzerland and another one in London makes it possible for small and medium-sized Swiss participants, in particular, to deal on the international equity market without needing to be tied in to other bourses. The Group’s Swiss and London exchanges are made available to participants by the same basic entity, since the SWX Swiss Exchange and virt-x – together with the data vendor EXFEED – operate under common management, to the extent permitted by regulatory provisions.

More exacting requirementsThe SWX Swiss Exchange and virt-x together form the world’s tenth largest stock market in terms of capitalization, which at end-December 2005 totalled CHF 1237 billion, and also the tenth largest in terms of turnover, which amounted to CHF 1213 billion. Like its European peers, the SWX Group needs additional transaction volume to cover the constantly rising overheads inherent in electronic securities trading and the higher requirements in terms of service levels. One such cost factor is risk management, which in recent years has gained tremendous importance for banks and other SWX participants as well. In addition to market players’ desire for anonymity in securities trading, risk considerations were a major argument for the creation of virt-x’s central counter-party (CCP) capability. Ongoing advances in security tech-nologies and applications are likewise making the demands placed on electronic stock markets more and more exacting. One risk control requirement that has involved considerable expense for SWX is maintaining redundant IT facilities at a secondary site, plus an alarm system. Even in the event that its buildings had to be evacuated and all its central comput-ers shut down, the Group would thus be able to carry on business almost seamlessly at the secondary site over an extended period.

Concurrent with this relentlessly rising upside pressure on costs, stock exchanges face another development that is depriving them of revenue: the trend towards in-house handling of order flow by their biggest clients. The SWX Swiss Exchange and virt-x are also feeling the pinch of this move towards internal set-off. They must therefore pursue strategies aimed at preserving market share in their core business, and in the SMI segment in particular, while also tapping into appropriate niche markets.

Agreement with the FSAThe SWX Swiss Exchange seeks to maximize market poten-tial by offering framework conditions which are geared to participants’ needs and counter the trend towards over- regulation. It would like to attract more foreign participants, investors and issuers. Last year, in agreement with the UK Financial Services Authority (FSA), SWX came up with an innovative way to reconcile the new EU capital market rules with its own listing regulations. Its newly created EU-com-patible segment has been available to SMI issuers since 1 July 2005, facilitating their access to the harmonized European capital market. In prospectus approval procedures – which under EU rules require FSA involvement because of the latter’s jurisdiction over such matters in the UK – SWX acts as the first point of contact for issuers and coordinates the process with the FSA. A similar situation applies when it comes to enforcement of issuers’ obligations under EU rules. The SWX Swiss Exchange and the FSA have defined their separate roles in this area in an exchange of correspondence. However, the solution only concerns issuers in SWX’s EU-compatible segment. Other virt-x issuers and all those listed on the SWX Swiss Exchange continue to be subject exclusively to the familiar SWX listing regime governed by Swiss law.

CORE BUSINESS – TWO CASH MARKETS UNDER ONE MANAGEMENT


19KerngeschäftSWX Group Geschäftsbericht 2005

The SWX Platform – looking back on 10 years’ dependable service

“ The trading platform provides the

SWX Swiss Exchange with a solid

basis for reliable operation as well as

for extensions.” Chris Landis, Member of the Management Committee / Information Technology

The SWX Swiss Exchange introduced its electronic trading system on 8 December 1995. The previous three years had seen feverish development and two

failed projects with similar objectives.

The system initially had teething problems, but it was quickly perfected. Finally, in August 1996, domestic shares and bonds also migrated to the new platform.

One would have thought that after all those efforts, the SWX Platform (as it came to be called) was practically complete. Quite soon, however, it became

apparent that the new exchange, which had been designed for the volumes previously handled by open outcry around a ring, was somewhat undersized for

data-based trading. Originally conceived to process an average flow of four orders per second, the system was constantly upgraded in the following years to

meet growing demands. By 2005 its average capacity had been expanded to about 200 orders per second. This was achieved by using ever faster processing

equipment and broader bandwidth for data transmission, at roughly the same operating cost. Several new software releases were also implemented.

Even so, from 2002 it became clear that step-by-step enhancements were reaching their limits. The decision of the Swiss Electronic Exchange’s designers to

implement an exclusively order-driven market model was proving unsatisfactory – especially in the case of securitized derivatives, and later on for international

bonds too.

This was where Quotematch came in. Inaugurated in November 2005, the aim of this project was to add a quote-driven subsystem to the SWX platform,

thereby easing the strain on the order-driven market. Judging by the experience gained since its inception, Quotematch appears to be fulfilling its promise.

Despite a continually rising number of transactions, the platform as a whole has performed considerably better and significantly fewer mistrades have been

observed in the warrant segment.

After ten years of operation entailing eight major software releases and countless smaller ones, the SWX platform is in many ways no longer the same system

that came on stream in December 1995. Despite this, the central architecture has remained largely unchanged over the past decade and continues to provide

the basis for reliable operation as well as for extensions.


20 Core businessSWX Group Annual Report 2005

Expanded SWX trading systemThe lynchpin of the services provided by the SWX Group is its electronic trading platforms. In addition to its proven 10-year-old oder-book-driven trading system and the more recent, firmly established repo exchange, SWX has operated Quotematch, a high-capacity trading platform for quote-driven transactions, since 11 November 2005. Quotematch has markedly enhanced the efficiency of the SWX trading system and has greatly increased its capacity. The system can now handle products requiring a market-making capabil-ity, for example, by marshalling new quotes into the market at high speed. Warrants and structured products are cases in point. The additional market functions incorporated in Quotematch have given the SWX a technological edge over its competi-tors, and they meet the current requirements of the warrant market to a tee. Trading capacity in specifically targeted product segments has thus been expanded substantially.

The Swiss Value Chain – a proven performerThe Swiss Value Chain offers straight-through trade process-ing capability via cooperation with major international secu-rities trading and settlement organizations. The clearing providers of virt-x are LCH.Clearnet Ltd. and SIS x-clear AG, who provide a flexible clearing solution to fulfil the require-ments of our members. Its settlement providers are CrestCo, Euroclear Bank and SIS SegalnterSettle AG. SWX’s settle-ment providers are Clearstream International, Euroclear Bank and SIS SegaInterSettle AG. Collaboration between the Swiss Value Chain and these organizations has provided participants not only with further price reductions, but also with better-quality service. The Swiss Value Chain illustrates at both the national and international levels how the most widely varying entities, sometimes even in compe tition with one another, can cooperate efficiently and, more important still, for the benefit of market players.

Under the dual CCP arrangement, members have the abil ity to choose between two different CCP service pro viders. Some members made use of this opportunity over the re-porting year.

A settlement regime for virt-x members was introduced in late 2004 which has led to one of the highest on-time settlement rates, at 99.95 %.


21Core businessSWX Group Annual Report 2005

SWISS VALUE CHAIN

CrestCo

Swiss Interbank Clearing

SNB / SECB

LCH.Clearnet Ltd SIS x-clear AG

Clearing members Clearing members

Inte

rnat

iona

l Bon

ds

Pay

men

tS

ettl

emen

tC

lear

ing

Trad

ing

Source: SWX Swiss Exchange / virt-x

Euroclear Bank Clearstream International

SWX Swiss Exchangevirt-x

SIS SegaInterSettle AG

TIF simplifies SNB reporting requirementsA focal point of the ongoing Transparency in the Fund Market (TIF) programme last year was the system’s extension to include the Swiss National Bank’s (SNB) redefined invest-ment fund survey. Since October 2005, the SNB has required reports on changes in assets under management and on asset structure. All Swiss fund managers and representatives of foreign funds must provide this information.

Most of the SNB investment fund questionnaire can be filled in with data which, in accordance with their contractual obligations, investment funds have been submitting to TIF since July 2003 in their monthly asset development reports.

To comply with the full SNB data provision requirements, existing TIF customers need only deliver the new asset struc-ture report in addition. Fulfilment of the reporting require-ments via TIF is approved by the SNB for efficiency’s sake, since under the existing procedures a large portion of the relevant information stems from the top-quality TIF data-base. That is another advantage of this central database for the fund industry: TIF covers another data provision obliga-tion under the Investment Funds Act, together with the one pertaining to publication in the printed media.

In addition to this extension of the scope of TIF data require-ments, the reporting period saw a further reinforcement of



45

40

35

30

25

20

15

10

5

0

9000

8000

7000

6000

5000

4000

3000

2000

1000

0

Janu

ary

20

03

Mar

ch 2

00

3

July

20

03

Nov

embe

r 2

00

3

Mar

ch 2

00

4

July

20

04

Nov

embe

r 2

00

4

Mar

ch 2

00

5

Febr

uary

20

05

Febr

uary

20

04

Febr

uary

20

03

July

20

05

Nov

embe

r 2

00

5

Dec

embe

r 2

00

5

Dec

embe

r 2

00

4

Dec

embe

r 2

00

3

May

20

03

Sep

tem

ber

20

03

May

20

04

Sep

tem

ber

20

04

May

20

05

Apr

il 2

00

5

Apr

il 2

00

4

Apr

il 2

00

3

June

20

05

June

20

04

June

20

03

Sep

tem

ber

20

05

Oct

ober

20

05

Oct

ober

20

04

Oct

ober

20

03

Aug

ust

20

05

Aug

ust

20

04

Aug

ust

20

03

Janu

ary

20

04

Janu

ary

20

05

VSMI SMI IndexSource: SWX Swiss Exchange/virt-x

COMPARISON OF SMI AND VSMI 2003–2005

quality control. The introduction of new security protocols has made it possible to monitor the dissemination of data at all times. Supplementary checks, especially in asset reports, are improving data quality and increasing the potential for evaluating investment funds individually.

Volatility, a new addition to the SWX index familyOn 25 April 2005, pure volatility became a tradable com-modity on the SWX Swiss Exchange with the launch of VSMI® on the SMI®. This volatility index reflects a portfolio that reacts to changes in volatility rather than to price fluc-tuations. The VSMI® is a leading indicator that measures the forward market’s expectations with regard to near-term bands of fluctuation. Based on a formula, a VSMI® value of 25, for example, shows that with the SMI® at 6000 points, equity futures discount a trading range between 5570 and 6430 over the next 30 days. A more detailed description of

the index calculation can be found at http: / / www.swx.com/trading/products/indices/stock_indices / vsmi_indices_en.html.

The volatility index on the SMI® grew out of a joint initiative involving the SWX Swiss Exchange, STOXX, Deutsche Börse and Goldman Sachs. The same methodology is used in this new benchmark as in VSTOXX® and VDAX-NEW, launched concurrently. These indices are also licensed as underlying assets for volatility futures contracts on Eurex. Trading in them began on 19 September 2005.



New classification standard for sectors and segmentsFrom 1 January 2006, the SWX Swiss Exchange based its indices on the sector groupings contained in the Industry Classification Benchmark (ICB) that is replacing the Dow Jones Global Classification Standard (DJGCS). The ICB, a common taxonomy drawn up by Dow Jones & Co. and FTSE Group, is recognized as a global standard because of the international presence of these two companies’ own indices. A number of world-renowned benchmarks already use the ICB, including NASDAQ, NYSE, London Stock Exchange, Euronext, STOXX, Hang Seng Index Services, Russell, Dow Jones Wilshire, Financial Times, The Wall Street Journal, CNBC and SmartMoney.

The new standard provides a finely graduated, thorough-going tool for economic analysis. Crossborder comparisons

of companies are made easier by four classification levels, as companies are allocated to a subsector that precisely describes the type of business activity.

The ICB earmarks and manages information on over 50 000 companies spread across 67 countries. The classification system forms into:· 10 industries enabling investors to track global economic trends;

· 18 supersectors that can help in devising macroeconomic strategies and making investment and trading decisions;

· 39 sectors providing investment managers with a compre-hensive basis of comparison;

· 104 subsectors allowing more detailed quantitative and qualitative analysis.

THE SWX INDEX FAMILY

SPI®

SMI® SMI®

Domesticshares

(Swiss All Share Index)

Shares with <20 %free float

Investmentcompany index

SPI® LARGE SMI Expanded™

SPI EXTRA® SMIM® SPI® MID

Foreignshares

SPI® SMALL

SPI® Family SMI® Family SXI® Family


SXI

LIF

E S

CIE

NC

ES

®

SXI

Bio

+Med

tech

®



Source: SWX Swiss Exchange/virt-x

Great Britain 9.1%

Germany 2.8%

Switzerland 86.6%

Misc. countries 0.8%

France 0.6%

TURNOVER BREAKDOWN BY LOCATION OF SWX PARTICIPANTS

The existing economic and market sector indices are being fully transposed on to the ICB standard. Since the indices based on industry groups and subgroups cannot be incorpo-rated in the new structure, they will no longer be calculated or published from 3 January 2006 onwards.

Expanded membership16 companies began trading on SWX and / or virt-x in 2005, of which 13 were foreign institutions. This has further enhanced the international character of the exchanges’ membership.

In view of changes to the SWX index universe arising from adoption of the ICB classification standard, the SPI® sector indices will be adjusted as follows:

Status 30.12.2005 (last trading day) * See Glossary p. 129

Active participants SWX Swiss Exchange virt-xTotal 87 112Switzerland 56 57

United Kingdom 15 38

Germany 6 6

France 3 4

Netherlands 2 2

Liechtenstein 1 0

United States 0 2

Austria 1 1

Sweden 1 1

Ireland 1 1

Luxembourg 1 0


BREAKDOWN OF PARTICIPANTS*

5 companies terminated their membership in the reporting year. At end-2005, a total of 121 institutions were trading on the SWX / virt-x platform, 58 of them incorporated in Switzer-land.

NEW PARTICIPANTS 2005

Active participants SWX Swiss Exchange virt-xTotal 7 14Switzerland 3 3

United Kingdom 0 7

Germany 1 2

France 1 1

Sweden 1 0

Ireland 1 1


CLASSIFICATION STANDARDS

DJGCS (until 31.12. 2005) ICB (from 1.1.2006)Economic Sector Industry

Market Sector Supersector

Industry Group Sector

Sub-Group Subsector




31. 12. 2004 31.12.2005 ChangeSwiss Market Index (SMI)® 5 692.3 7 583.9 +33.2 %

SMI MID(SMIM)® Price 861 1 132.8 +31.6 %

Swiss Perform-ance Index (SPI)® 4 234.6 5 742.4 +35.6 %

SPI EXTRA® 1 113.8 1 473.9 +32.3 %

SXI LIFE SCIENCES® 1 175.0 1 582.7 +34.7 %

SXI Bio+Medtech® 1 230.1 1 696.7 +37.9 %


Stock markets performing well 2005 was highlighted by hefty returns in all segments of equities trading. Small- and mid-cap issues posted above-average gains, as did bio and medtech companies. The buoy-ant mood on stock markets had a positive impact on IPO activity. Altogether, 11 companies went public on the SWX Swiss Exchange during the reporting period.

SMI shares traded as European blue chipsThe performance of stocks included in the Swiss Market Index was above-average compared with Europe’s other large-cap issues in 2005. Trading in SMI shares takes place on the London-based virt-x Exchange, combining the regula-tory framework set up by the SWX Swiss Exchange and a presence in Europe’s financial capital, home to all the global players in investment banking. While issuing requirements are based on the SWX Listing Rules, trading complies with the relevant UK provisions and is overseen by the world-renowned Financial Services Authority.

Being on virt-x brings Swiss blue chips closer to the Euro-pean market than they would be on individual continental exchanges. The bulk of turnover in SMI issues is generated by virt-x members incorporated outside Switzerland.

Sector-focused trading on SWXShares dealt in on the SWX Swiss Exchange are subject to efficient listing and trading regulations featuring the twofold merits of balance, thanks to self-regulation, and interna-tional compatibility. In addition to 263 Swiss companies (not including funds and ETFs), which enjoy the advantages of their home market, SWX is especially useful to foreign firms operating in sectors that are of great importance to Switzerland’s highly specialized wealth and asset manage-ment industry. This applies particularly to sectors such as financial services, technology, pharmaceuticals, biotechnol-ogy and medical technology. The Swiss banks’ research departments can claim comprehensive expertise in these areas, and the related stocks have a high profile.

INDEX OVERVIEW


Great Britain 46.9%

Germany 3.6%

Switzerland 39.2%

Netherlands 0.4%

Misc. countries 0.4%

France 9.4%

TURNOVER BREAKDOWN BY LOCATION OF VIRT-X PARTICIPANTS



New segment for foreign blue chipsOn 1 July 2005, the SWX Swiss Exchange inaugurated trad-ing in the newly established SWX Swiss Exchange – Spon-sored Segment. This segment features foreign equities which, while not listed on SWX, are sponsored by an accred-ited securities dealer. Equity securities in the Sponsored Segment are simply admitted to trading, without being given a listing. This authorization is granted via the sponsor, with no prospectus or listing notice required. But it is neverthe-less announced by means of an official communiqué three days before trading starts. The sponsor accepts a binding market-making commitment and is additionally responsible for compliance with the trading and supervision rules as well as all reporting obligations. The SWX Swiss Exchange trad-ing regulations apply fully to these sponsored stocks. The segment provides issuers with an alternative to a secondary listing, while offering investors simple, inexpensive access to large-cap shares from foreign markets. At end-2005, 61 internationally renowned blue chips issued by the world’s leading corporations based in North America, Germany, the Netherlands and Japan were trading in the Sponsored Seg-ment. They included ABN AMRO, Adidas, Apple, AXA, BNP Paribas, Chevron, Citigroup, Coca-Cola, Dell, Deutsche Telekom, eBay, IBM, Johnson & Johnson, Microsoft, Motor-ola, Nomura, SAP, Wal-Mart and Yahoo. Sponsored stocks can be traded in Swiss francs or US dollars. By the end of the reporting year, the new foreign blue chips segment had generated a turnover of CHF 439.3 million.

SWX derivatives market set for further growth 2005 was in many respects a heartening year for the SWX Swiss Exchange’s derivatives segment. For one thing, this asset class gained new momentum following the introduc-tion of Quotematch. For another, both the number of listed products and turnover rose steeply during the reporting period. Turnover reached CHF 32.3 billion, marking an increase of 28.6 % over the year-earlier figure. The number of listed derivates was 49 % higher than in 2004, and there were 6246 tradeable products on the platform at the end of the reporting year.

Trading in securitized derivatives poses special challenges for securities exchanges. The structure and related pricing of these products used to be fairly easy to understand, but things have grown much more complex in recent years. Exchanges, too, have had to adapt to the new realities.

The issuer of a derivative acts as market maker, ensuring sufficient liquidity for his product. By relying on this market-making system, the exchange creates the best possible con-ditions for derivatives trading. Quotematch, the new high-capacity trading system inaugurated by the SWX Swiss Exchange in 2005, was tailor-made for this environment. Its launch was given an additional boost by a reduction in listing charges for derivatives. Issuing banks can buy a range of derivatives listing packages that offer cost savings on bulk orders.



BME Spanish Exchanges0.9% (1.4%)

Euronext 6.3% (3.6%)

Luxembourg Stock Exchange0.0% (0.1%)

SECURITIZED DERIVATIVES TURNOVER BY EXCHANGE IN 2005 (2004)

Borsa Italiana 22.1% (13.1%)

OMX Helsinki 0.6% (0.4%)

London Stock Exchange 0.2% (0.5%)

Oslo Børs 0.1% (0.1%)

SWX Swiss Exchange 9.2% (12.7%) Wiener Börse 0.1% (0.0%)

Source: FESE

* In accordance with the new presentation of 2004/2005 turnover figures for securitized derivatives, as reported to FESE by Deutsche Bank and EUWAX.

German Exchanges(incl. EUWAX)

60,5% (67,4%)*

7000

6000

5000

4000

3000

2000

1000

0

Sw

iss

Equ

itie

s

Exc

hang

e-Tr

aded

Fun

ds

Clo

sed-

end

Fund

s

Sw

iss

CH

F B

onds

Fore

ign

CH

F B

onds

List

ed I

nter

-na

tion

al B

onds

Sec

urit

ized

Der

ivat

ives

Inte

rnat

iona

lE

quit

ies

20032001 2004

* Only SWX Swiss Exchange, securities are not listed at virt-x.

2002 2005


LISTED SECURITIES*

Expanded markets for bondsThe most important development in interest rate products during the reporting year was the publication of a new set of rules enabling international bonds to be listed on the SWX Swiss Exchange, a move that aroused keen interest world-wide. The news that these bonds could now be listed on SWX for the first time was very well received by lead banks and investors alike. The amounts of two US dollar issues were increased in the course of the year, owing to strong demand.

Swiss franc bondsReporting and publication requirements for Swiss franc bonds were amended last year. Trades conducted off-market may now be reported and published at the latest before the start of trading on the next business day at the SWX Swiss Exchange. This change addressed a widely felt need among market participants. A continuing advantage is that every single transaction is published, contrary to the situation pre-vailing outside Switzerland.

Turnover totalled CHF 170.9 billion, down 4.8 % on the 2004 figure. The number of trades fell by 11.9 % to 330 544. The number of Swiss franc bonds dropped by 0.2 %; there were 1235 bonds listed on SWX at the end of December 2005.



The revised SWX Listing Rules offer issuers of international bonds a compelling alternative to a listing in the European Union. Once the EU’s Transparency Obligations Directive takes effect on 20 January 2007, issuers can increasingly be expected to take a more considered decision regarding where to have their new debt securities listed.

International bonds2005 saw the listing of 16 international bonds denominated in euros and US dollars, representing an overall value of around EUR 7.1 billion. These were based on the revised Listing Rules that came into force on 1 February 2005. In addition to straight bonds, the newly listed issues included mortgage-backed and convertible bonds as well as loan parti-cipation notes and global bonds. Turnover was encouraging.

Turnover in CHF million 2001 2002 2003 2004 2005 Change

International Bonds 33 399 31 543 27 018 25 874 15 933 – 38.4%

Swiss CHF Bonds 115 194 134 624 124 603 103 110 79 773 – 22.6%

Foreign CHF Bonds 69 241 87 138 92 106 76 517 91 163 +19.1%

Total 217 834 253 305 243 727 205 501 186 869 – 9.1%

Number of bonds2001 2002 2003 2004 2005

Listed International Bonds 1 378 1 444 2 166 2 521 2 794 +10.8%

Listed CHF Bonds 1 620 1 348 1 272 1 237 1 235 – 0.2%


TRADEABLE BONDS ON SWX



ETFs on the SWX Swiss ExchangeETFs are investment funds which, unlike conventional funds but like equities, can be traded at any time during the busi-ness hours of the exchange where they are listed. The ETFs launched so far on the SWX are index funds whose price and performance replicate the same features of an underlying benchmark.

The ETF segment continues to enjoy above-average growth. Its rapid expansion can be observed not only in the rising number of listed vehicles, but also in the higher turnover they generate. In 2005, 12 new ETFs were listed on SWX. The number of products totalled 34 at year-end and covered a large portion of the global investment universe. Turnover rose to CHF 11.5 billion from CHF 9.7 billion in 2004, mark-ing an increase of 18.6 %. Pricing of 34 SWX-listed ETFs is taken care of by 10 official market makers, guaranteeing a regulated market for these products.

At the end of the reporting period, investors were able to trade in three different asset classes using ETFs as proxies. The broadest range of ETF products is offered in the equity universe, where players can now invest the world over. A few examples are the DJ Japan Titans 100 and the FTSE / Xinhua

Trading segment for unlisted international bondsThe number of authorized trading currencies for interna-tional bonds not listed on the SWX was increased by six during the reporting year. These new currencies – the Ice-landic krona (ISK), the Mexican peso (MXP), the Czech koruna (CZK), the Hungarian forint (HUF), the Polish zloty (PLN) and the Turkish lira (TRY) – brought the total to 17. Market makers like ABN AMRO, Credit Suisse, Kredietbank Luxembourg, Rabobank, UBS, Winterflood, Zürcher Kan-tonalbank and two newcomers, Barclays and HSBC, ensure liquid trading in this segment.

Turnover in unlisted international bonds came to CHF 15.6 billion in 2005, marking a drop of 38.4 % compared with the year-earlier figure. The number of transactions totalled 200 045, down 26.3 %, while the number of international bonds authorized to trade on the SWX was 2794, up 10.8 %.

Two markets for ETFsBoth the Group’s platforms, the SWX Swiss Exchange and virt-x, deal in exchange-traded funds (ETFs). The main dif-ference between the two markets lies in their admission procedures. On the SWX Swiss Exchange ETFs are listed, whereas on virt-x they are admitted to trading.

Source: FESE/LSE

Euronext 18.4% (20.4%)

ETF TURNOVER BY EXCHANGE IN 2005 (2004)

Borsa Italiana 10.3% (5.5%)

London Stock Exchange 9.1% (7.6%)

OMX 4.9% (5.8%)

SWX Swiss Exchange and virt-x 8.2% (9%)

Wiener Börse 0.04% (0.0%)

Deutsche Börse AG49.1% (51.7%)



14 000

12 000

10 000

8 000

6 000

4 000

2 000

0

20012000 2002 2003 20052004

SWX Swiss Exchange

virt-x


ETF TURNOVER (CHF M)

China 25 in Asia, the DJ EURO STOXX 50 and the DJ STOXX 50 in Europe, and the S & P 500 and DJ Industrial Average in the United States. In addition to broad regional bench-marks, ETFs include individual country indices, sector indi-ces and others, such as growth and value, that track styles. Naturally, they also make it possible to invest in a surrogate SMI® or SMIM®, respectively reproducing Swiss blue chips and mid-cap stocks. By subscribing to a single ETF, investors buy into a specific region, continent or tilt – or, if they wish, into the entire world.

Another asset class available in the ETF segment is fixed income. On 31 December 2005, 3 ETF bond index trackers were listed on the SWX Swiss Exchange

A new category of ETFs was created during the reporting year with the launch last May of the first exchange-traded fund based on a raw materials index. It was issued in US dollars. Unlike on other exchanges, issuers on SWX are not tied to a particular currency, so they can float their vehicles in any currency they wish. ETFs listed on the SWX Swiss Exchange are offered in four different currencies: Swiss francs (CHF), euros (EUR), US dollars (USD) and Japanese yen (JPY).

ETFs on virt-xvirt-x can look back on a banner year in the ETF segment. Turnover totalled CHF 2.0 billion, up 133.7 % compared with the 2004 figure (863 million). The London exchange was thus able to contribute substantially to the growth of the ETF segment within the SWX Group. A broad assortment of exchange-traded funds is available on virt-x, replicating most of the internationally important equity indices. At end-2005, 18 ETFs fielded by 4 issuers had been admitted to trading on virt-x, with 5 banks responsible for market making.

ETF issuers face no major administrative hurdles when they apply for authorization to trade on virt-x: the process is quick and flexible. This is because, unlike on the SWX Swiss Exchange, ETFs traded on virt-x are not listed. However, only

ETFs listed on a recognized European exchange may be admitted to trading. The issuer is free to choose the trading currency.

It is encouraging to see that market makers are managing to keep spreads in the pricing of many ETFs very narrow. The difference between bid and ask in some cases amounts to just one or two euro cents – equivalent to less than 10 basis points. For investors, these are compelling terms indeed.



“ With Quotematch, the SWX Swiss

Exchange has set a new standard

in the modernization of securities

trading.” Lee Hodgkinson, Member of the Management Committee / Market Operations

Quotematch – a milestone in derivatives trading

After 18 months of preparatory work, Quotematch was launched as planned on 11 November 2005. Most market makers transferred their trading activities to the new system right from the start. After just four weeks of operation, 97 % of the 6555 securitized derivatives listed on the SWX Swiss Exchange last November had migrated.

From the strategic and technological standpoint, the Quotematch programme is one of the most important projects undertaken by SWX since the advent of electronic trading. 125 people spent more than 95 man-years developing the

system. Their tasks ranged from defining business and marketing strategy to designing and testing the technical infrastructure. This involved the enactment of over 9000 individual test scenarios on eight different sets of hard-ware.

Quotematch has upgraded the SWX trading system and con-siderably increased its handling capacity for products in quote-driven segments. The new functional features have raised growth potential in these areas, especially for securi-tized derivatives – the first asset class to migrate to the new system.


32 KerngeschäftSWX Group Geschäftsbericht 2005

Quotematch was developed in cooperation with Computer-share Markets Technology and is based on their X-stream platform, which is used throughout the world. A key factor in choosing Computershare X-stream was their ability to deliver quoting performance that far exceeds the minimum require-ments. X-stream further offered low-risk implementation and a shorter time to market for the Quotematch project, based on existing business functions and the standards required for the new system. By allowing market makers to marshal their quotes quickly and easily and by providing them with faster access to price takers via existing SWX interfaces, Quotematch upholds the principles of the SWX market model.

The new platform offers participants a number of major advantages:· transaction handling by a high-capacity electronic quote-driven system based on the SWX’s tried-and-tested, scal-able technology;

· absorption of the expected growth in issues of securitized derivatives and in trading volume;

· rapid quote marshalling through a new, flexible market maker interface;

· faster access for price takers using existing SWX inter-faces;

· straight-through processing.

The possibility of a roll-out for additional product segments, such as international bonds and exchange-traded funds, will be studied more closely in 2006.

Committed to providing top-tier service, the SWX Swiss Exchange last year adopted the SMARTS realtime market oversight and monitoring system. A careful, systematic evalu-ation revealed SMARTS technology to be the best available for ensuring market integrity. The system was also chosen in view of its fine analytical functions, which enable SWX to gauge the effects of changes within the market on its effi-ciency and propriety. SMARTS is supported both by the SWX platform and by Quotematch. It will be introduced on virt-x in 2006.

Potential for securitized derivatives in Europe

SWX intends to become one of Europe’s leading exchanges for trading in warrants and structured products, collectively known as securitized derivatives.

Turnover growth is estimated to be running between 15 % and 35 % a year, making this segment one of the high-flyers of the securities industry. Germany

has the biggest and fastest growing securitized derivatives market in Europe: turnover soared by 130.2 % from 2002 to 2005. Trading in this segment is also

very brisk in Italy and Switzerland. Turnover figures for securitized derivatives reported by other European exchanges are not note worthy as yet.

The SWX Swiss Exchange wants to play an active role in the Europe-wide expansion of securitized derivatives trading. With the introduction of Quotematch

and a new scale of fees for guaranteed quoting capability and the listing of securitized derivatives, it has paved the way for successful growth of this segment

on its home market.

In order to move into Germany’s securitized derivatives market, the SWX Group bought the Bremen Stock Exchange on 4 July 2005. By building up a

fully electronic quoting and trading platform, SWX proposes that German banks will transmit their orders using the existing order execution and settlement

infrastructure, and therefore with practically no additional investment on their part.




34

“ Framework conditions which counter

the trend towards over-regulation, and are

therefore appreciated by foreign parti ci-

pants, investors and issuers alike, also

contribute to the success of the Swiss

financial marketplace.” Jacqueline Morard, Deputy Head of Admission Division, Senior Vice President


Companies

Swissness

The SWX Group is the securities exchange organization of the Swiss financial marketplace and ensures the smooth operation

of its exchange infrastructure. It provides securities traders with efficient access to national and international markets. At the

SWX Swiss Exchange, issuers and investors find a clear regulatory framework which closely reflects market realities and adds

to Switzerland’s appeal as a financial centre.


Ten years ago, the SWX Swiss Exchange inaugurated the world’s first electronic trading platform with integrated clear-ing and settlement facilities. This order-book-driven market is particularly suited to trading in liquid securities such as blue chips. Recent years have seen new user requirements emerging in the area of electronic trading, where rapidly changing quotes have led to immense strains on system capacity without a corresponding increase in trading vol-umes. Today, some product categories handled by market makers – warrants are a typical example – are characterized by relatively few trades but high numbers of quotes.

To address this issue, SWX and Australian Computershare together developed a state-of-the-art trading system in 2005,

SWX SWISS EXCHANGE – SWITZERLAND’S SECURITIES EXCHANGEThe SWX Swiss Exchange operates several trading platforms and is a marketplace for different securities segments, including

Swiss equities, Swiss franc bonds and international bonds as well as securitized derivatives, ETFs and Swiss franc repo

trading.

which supplements the existing platform and is suitable for markets featuring high transaction rates accompanied by strains on system capacity.

Regulatory bodyThe SWX Swiss Exchange performs important regulatory duties in Switzerland. Within the context of self-regulation provided for in the Stock Exchange Act, it sets the require-ments for listing on the exchange. The country’s law makers have conferred the power of self-regulation on SWX, subject to approval and supervision by the Swiss Federal Banking Commission (SFBC). The SWX Admission Board issues the regulations (rules, directives and circulars) governing the listing of securities and the maintenance of listing. It also

“ In 2005, we developed a

state-of-the-art trading system

suitable for markets featuring

high transaction rates.” Heinrich Henckel, CEO, SWX Swiss Exchange


37 Reports from individual companiesSWX Group Annual Report 2005

carries out various supervisory duties which are performed by official regulatory agencies in other countries. The SWX Swiss Exchange has a vested interest in high regulatory stand-ards, given the imperative need to maintain market confi-dence and ensure the competitiveness of the Swiss financial centre.

SWX also owns the SMI®, SPI®, SXI® and SBI® families of Swiss market indices, which it developed itself. These in-dices are calculated and published regularly, helping par-ticipants to track and assess the overall market or selected individual segments. In addition, they serve as underlyings and benchmarks for numerous exchange-traded products.

Within the SWX Group, the SWX Swiss Exchange holds all the capital of virt-x and half the shares of Eurex. It took over the Bremen Stock Exchange in the reporting year, the idea being to use this exchange as a vehicle for establishing the Quotematch market model in Germany.

The company’s different business areas and subsidiaries are reflected in the revenue structure as follows: Fee income generated directly by trading volume on the SWX Swiss Exchange accounted for 13 % of total revenue in the report-ing period. At 37 %, the share of income deriving from the stake in Eurex was still significant (2004: 45 %). Total revenue in 2005 rose by 4.7 % to CHF 358.4 million.

At 5 502 742, the number of trades conducted on the SWX trading platform was up 21.1 % in 2005. Their aggregate value amounted to CHF 336.7 billion, a rise of 5.9 % com-pared with the previous year’s figure.

100%

80%

60%

40%

20%

0

2003 2004 2005

Eurex derivatives trading

Service level agreements

Miscellaneous revenue

Exchange services*

Source: SWX Swiss Exchange

SWX SWISS EXCHANGE REVENUE STRUCTURE

* Comprising exchange fees, admission fees and information services.

360 000

320 000

280 000

240 000

200 000

160 000

120 000

80 000

40 000

0

2003 2004 2005

Other operating expenses

Depreciationand amortization

SFBC fee payments

Personnel expense


SWX SWISS EXCHANGE EXPENSE STRUCTURE



2005 2004

Swiss Equities 95 625 63 618

International Equities 6 476 11 290

Exchange-Traded Funds 11 503 9 701

Closed-End Funds 3 888 2 834


2005 2004 2003 2002

Swiss CHF Bonds 79 773 103 110 124 603 134 624

Foreign CHF Bonds 91 163 76 519 92 106 87 138

International Bonds 15 933 25 874 27 018 31 543


Turnover in Swiss shares rose significantly, by 50.3 % to CHF 95.6 billion, while that in foreign shares dropped by 42.6 % to CHF 6.5 billion. In securitized derivatives trading, turn-over was up 28.6% to CHF 32.3 billion. The trend observed in previous years continued, with the number of trades on the

platform increasing but the average ticket size diminishing. Turnover in the fixed income segment was lower, falling by 38.4 % to CHF 15.9 billion for international bonds and by 4.8 % to CHF 170.9 billion for Swiss franc issues. Turnover growth in exchange-traded funds (ETFs) was 18.6 %.

100000

90000

80000

70000

60000

50000

40000

30000

20000

10000

0

2004 2005

Exchange- Traded Funds

Closed-End Funds

International Equities

Swiss Equities

TURNOVER IN EQUITY PRODUCTS (CHF M)

140000

126000

112000

98000

84000

70000

56000

42000

28000

14000

0

2002 2003 2004 2005

International Bonds

Foreign CHF Bonds

Swiss CHF Bonds

TURNOVER IN FIXED INCOME PRODUCTS (CHF M)


Reports from individual companiesSWX Group Annual Report 2005

39

IPOsThe turnaround on the capital market that started in 2004 gathered further momentum in the reporting year. IP0s staged a significant recovery in markets across the world, with Europe enjoying above-average growth rates. Altogether eleven companies went public on the SWX Swiss Exchange,

compared with four in the previous year. The last time such a large number of new issuers tapped the market was in 2001. With a flotation of CHF 1.4 billion and a market cap-italization of CHF 5.8 billion, EFG International was one of the biggest offerings on SWX in recent years, surpassed only by the Swisscom IPO in 1998.

Name SectorMarket capitalization

(CHF million) First trading dayDottikon ES Holding Ltd Specialty Chemicals 257.7 31 March 2005

Advanced Digital Broadcast Holdings SA Telecommunications 310.2 29 April 2005

ARPIDA LTD Biotechnology / Pharma 217.7 4 May 2005

Mobimo Holding AG Real Estate 461.4 23 June 2005

Winterthur Technologie Ltd Industry (Abrasives) 127.1 1 July 2005

Speedel Holding Ltd Biotechnology 949.7 8 September 2005

Panalpina World Transport (Holding) Ltd Transport and Logistics 2 350.0 22 September 2005

Esmertec AG Software Development 288.8 29 September 2005

EFG International Private Banking 5 808.1 7 October 2005

NEBAG Finance / Financial Services 81.2 4 November 2005

Dufry Ltd Travel Retail 1 118.0 6 December 2005


INITIAL PUBLIC OFFERINGS IN 2005

International Equities 4% (8%)

Swiss Equities62% (52%)

Derivatives 22% (24%)

International Bonds 4% (6%)

Foreign CHF Bonds 4% (6%)

Swiss CHF Bonds 2% (2%)

Exchange-Traded Funds 1% (1%)

Closed-End Funds 1% (1%)


TRADES BY PRODUCT SEGMENT IN 2005 (2004)

Exchange-Traded Funds 3% (3%)

Closed-End Funds1% (1%)

International Equities2% (4%)

Swiss Equities 28% (20%)

Derivatives 10% (8%)

International Bonds5% (8%)


TURNOVER BY PRODUCT SEGMENT IN 2005 (2004)

Swiss CHF Bonds24% (32%)

Foreign CHF Bonds27% (24%)



New listings of bonds rose by 57.0 %. Derivatives issues posted a tremendous increase (up 35.3 %) last year; this was largely due to the introduction of Quotematch, the new trading platform for derivatives, and an attractive new pricing model for the listing of derivatives.

Company name Primary / secondary listingTrading in Sponsored

Segment Last trading dayCoca-Cola Company Secondary listing Yes 3 January 2005

E.ON AG Secondary listing Yes 14 January 2005

Société du Gaz de la Plaine du Rhône SA Primary listing No 24 January 2005

Compagnie Industrielle et Commerciale du Gaz SA Primary listing No 24 January 2005

International Business Machines Corp. Secondary listing Yes 28 January 2005

SAP AG Secondary listing Yes 31 January 2005

Scintilla AG Primary listing No 9 March 2005

Royal Dutch Petroleum Company Secondary listing No 16 March 2005

The Procter & Gamble Company Secondary listing Yes 30 March 2005

ABN AMRO Holding N.V. Secondary listing Yes 30 March 2005

Toshiba Corporation Secondary listing No 28 April 2005

Penturax AG Primary listing No 6 June 2005

Rario AG Primary listing No 6 June 2005

Rentura AG Primary listing No 6 June 2005

Bon appétit Group AG Primary listing No 8 July 2005

AT & T Corporation Secondary listing No 22 November 2005

Big Star Holding AG Primary listing N / A 30 November 2005

Beau-Rivage Palace SA Primary listing No 4 November 2005

Koniklijke DSM N.V. Secondary listing Yes 30 December 2005

Büro-Fürrer AG Primary listing N / A still open

Swiss International Air Lines Primary listing still open


DELISTINGS IN 2005

A handful of companies were delisted on SWX in the reporting period. Some of these delistings were due to mergers. In other cases, the companies involved were taken off the SWX roster following takeover offers or successful buyouts by the

majority shareholders, giving rise to so-called squeeze-out operations. Some foreign companies whose shares had been given a secondary listing at SWX were also delisted, in line with an international trend.


Reports from individual companiesSWX Group Annual Report 2005

41

“ Our framework conditions are

closely attuned to market realities

and counter the trend towards

over-regulation – which is why they

go down well with foreign partici-

pants, investors and issuers alike.” Daniel Keist, Member of the Management Committee / Admission

Supervision and enforcement of issuers’ obligations

Since 1998, the SWX Swiss Exchange has supported its issuers by applying a graduated enforcement concept as part of its efforts to eliminate fundamental shortcomings in financial reporting. The main purpose of supervision is to ensure proper compliance with accounting standards, not to impose sanctions on companies that fail to meet them. Thanks to the SWX enforcement concept, this objective is achieved using simple, inexpensive yet highly effective

methods. If irregularities are brought to light in the course of random checks, the company concerned is instructed to remedy the situation. In the event of gross violations – which are few and far between – SWX institutes sanction proceed-ings. This approach also proved its worth in 2005, and led to a marked improvement in financial reporting. The SWX Swiss Exchange intends to further improve the transparency, efficiency and credibility of securities trading by consistently enforcing compliance with accounting standards.



Annual reports 2001 2002 2003 2004 2

IFRS 155 162 145 145

Swiss GAAP FER 101 96 87 80

DEC-CFB 20 20 20 21

US GAAP 14 15 17 19

Other 8 2 2 1

Total 1 298 295 271 266


ACCOUNTING AND REPORTING STANDARDS


Other 0.4%

IFRS 54.5%

Swiss GAAP ARR 30.1%

US GAAP 7.1%

DEC-CFB 7.9%

ACCOUNTING AND REPORTINGSTANDARDS AS %

1 Total primary-listed shares on SWX2 Based on 2004 annual reports. Analyses for 2005 were not available by

the editorial deadline, because listed companies have up to the end of April 2006 (four months from the balance sheet date) to publish their annual reports.

Financial reporting 2002 2003 2004 2005No shortcomings 78 189 315 262

Comment letter 19 23 26 29

Sanction 11 13 4 9

Total monitored interim and annual reports 108 225 345 300


ENFORCEMENT ACTIVITIES



New directive on ad hoc publicityAn amended version of the provisions governing ad hoc pub-licity (Article 72 of the Listing Rules) has been in force since 1 July 2005. The purpose of ad hoc publicity rules is to ensure that issuers provide the public with transparent and timely information on important developments and changes within their companies. The basic wording of Article 72 was retained, but various formulations were adapted to take into account to take into account current practice. Details of ad hoc publicity are now contained in a new directive, which replaces Admission Board Circular No. 2. A commentary explaining the provisions and the current practice of SWX with regard to ad hoc publicity is also available. Numerous preliminary investigations were launched in the reporting year. Seven rulings were made, of which six were published.

Changes in regulations abroadAgainst the backdrop of the latest EU capital market regula-tion moves (implementation of the Prospectus and Market Abuse Directives in the EU and / or EEA), a new segmentation concept for the shares making up the Swiss Market Index (SMI) was introduced on 1 July 2005. SMI issuers now have an EU-compatible listing segment at their disposal on SWX. Being listed in this segment is the prerequisite for admission to trading on virt-x in the EU-regulated market segment. Under the terms of the Prospectus Directive, SMI issuers listed in the EU-compatible segment on SWX and those admitted to trading in the EU-regulated market segment on virt-x can have access to the harmonized European capital market by means of the “EU passport” for prospectuses. Swiss issuers trading on virt-x who do not want this access can have their securities listed in the SWX main segment. These securities will then be traded in the UK-exchange regulated market segment on virt-x, and their issuers will be subject exclusively to the SWX listing regime.

Furthermore, the rules for admission of shares to trading in the SWX Swiss Exchange Sponsored Segment entered into force on 1 July 2005. They allow shares of issuers with a primary listing on an exchange recognized by SWX to be admitted to trading in the Sponsored Segment without being listed on SWX.


“ virt-x will continue to offer a

strong centralized Swiss market

and innovative market-based

solutions in response to the new

challenges that our customers

are faced with.” Jim Gollan, CEO, virt-x

With virt-x, the Swiss financial marketplace meets the inter-national trading community in a market that offers cross-border trading, clearing and settlement of securities. Since its launch more than four years ago, virt-x has become increas-ingly international. In the year under review, more than half of the turnover in Swiss blue chips was generated by Lon-don-based and non-Swiss-owned market participants.

In 2005, which was a good stock market year, the turnover on virt-x increased by 22.8 % to CHF 1112.6 bn / GBP 491.4 bn (2004: CHF 906 bn / GBP 397 bn). 68.4 % of this turnover was generated from order book trading (2004:

VIRT-X – AN INNOVATIVE AND INTERNATIONAL PRESENCEIn buoyant trading conditions in Europe, virt-x saw turnover in 2005 reach record levels. In the year under review,

the SMI rose by 33.2 % to 7583.93 points.

69 %). Thanks to the UK Trade Reporting Service, which was introduced in the second half of 2004, the turnover in off-order-book business jumped by 25 % to CHF 352 bn / GBP 155 bn in the year under review. The number of off-order-book transactions increased by 91 % to 1.4 m.

With the increased market activity, the revenue from trading increased by 16 % to CHF 103 m / GBP 45.5 m (2004: CHF 89.2 m / GBP 39.1 m).



Trade Reporting Servicevirt-x offers the European securities industry a series of inno-vative and cost-effective services such as the Trade Report-ing Service. This allows virt-x to complement the SMI trading environment and focus on its central European presence. The UK Trade Reporting Service was introduced in 2004 in response to the needs of UK-based Retail Service Providers (RSPs) seeking a cost-effective alternative solution for reporting UK-listed securities. virt-x was in a position to offer such a service. Trade reporting is also available in 150 lead-ing European securities in the DAX, CAC, AEX, MIB, DJ STOXX 50, DJ EURO STOXX 50 and FTSE Eurotop 100.

Regulatory challengesLast year, trading on virt-x was affected by two EU directives which were implemented in the UK on 1 July 2005. The Prospectus Directive applies to securities offered to the pub-lic or admitted to trading on an EU-regulated market (EURM – a market which must comply with a number of require-ments set at EU level). The Market Abuse Directive concerns insider dealing and market manipulation in relation to an EURM.

Trades 2005 2004

Swiss Equities 10 863 086 9 414 935

Pan-European Equities 1 581 403 733 173

ETFs 6 948 3 475

Source: virt-x

Turnover in CHF m 2005 2004

Swiss Equities 997 768 840 250

Pan-European Equities 112 781 64 860

ETFs 2 016 863

Source: virt-x

1200000

1100000

1000000

900000

800000

700000

600000

500000

400000

300000

200000

100000

0

2004 2005

TURNOVER BREAKDOWN ON VIRT-X BY SEGMENT

ETFs

Pan-European Equities

Swiss Equities

12000000

11000000

10000000

9000000

8000000

7000000

6000000

5000000

4000000

3000000

2000000

1000000

0

2004 2005

ETFs

Pan-European Equities

Swiss Equities

NUMBER OF TRADES ON VIRT-X BY SEGMENT



With effect from 1 July, the SWX introduced a new EU-com-patible listing segment to which additional listing rules apply. These new rules set out that the prospectus must comply with the Prospectus Directive and be approved by an EU member state. Along with the new additional rules for the listing on the EU-compatible segment of the SWX, virt-x introduced the following trading segments:· the EURM for SMI securities;· the UK Exchange-regulated Market (UKEM) for SMI secur-ities;

· the EURM for pan-European securities admitted to trading on virt-x as at 1 July 2005;

· the UKEM for pan-European securities admitted to trading on virt-x on or after 1 July 2005 with the exception of secur-ities for which the issuer has requested admission to trad-ing on the EURM;

The EURM and UKEM segments of virt-x are both governed by the same trading and membership rules. All segments are supervised by the London-based Financial Services Author-ity (FSA).

Another European rule set that the virt-x has to consider is the Markets in Financial Instruments Directive (MiFID), which is due to be implemented on 1 November 2007 and whose purpose is to harmonize standards for investment companies in the EU. It also sets out the conditions under which companies will operate and the rules for operating EURMs. MiFID will introduce significant changes to the regulatory environment for EU financial markets and impose additional obligations on investment firms and exchanges. virt-x is planning additional services in view of MiFID.

Business continuity in troubled timesThe terrorist bombings in London on 7 July 2005 inevitably resulted in a sharp increase in market volumes. These were smoothly accommodated by the market’s business continu-ity procedures, including the seamless temporary transfer of virt-x’s market operations from London to Zurich.

1 600 000

1 400 000

1 200 000

1 000 000

800 000

600 000

400 000

200 000

0

2002 2003 2004 2005

EU

Switzerland

Misc.

United Kingdom

Source: virt-x

VIRT-X OFF-ORDER-BOOK TRADES 2002–2005

Number of trades

400 000

350 000

300 000

250 000

200 000

150 000

100 000

50 000

0

2002 2003 2004 2005

EU

Switzerland

Misc.

United Kingdom

Source: virt-x

VIRT-X OFF-ORDER-BOOK TURNOVER 2002–2005

in CHF m


“ The strategic challenges facing us

lie in the increasing integration of

Europe’s financial markets and, espe-

cially, in new regulatory frameworks.”

Werner Bürki, CEO, EXFEED

The number of professional users steadied at around 60 000 by the end of the reporting period. A gratifying development in this segment was the switch by 1300 subscribers from level-1 to level-2 service (the latter provides depth-10 mar-ket information). EXFEED’s revenue was boosted accord-ingly. Thanks to the buoyant mood on financial markets, the number of non-professional customers (private investors mostly working through e-trading portals) rose further.

EXFEED – GROWING DEMAND FOR RAW DATAAt end-2005, EXFEED was supplying data to a total of 133 customers. These included 29 traditional vendors. 13 data vendors

operated direct connections to the EXFEED ticker plant.

Results up on previous yearRevenue from basic fees, combining technical hook-up fees and flat-rate data-operating licences, climbed 10 % to CHF 3.3 million. This reflected a renewed upturn in business activity within the data industry, triggered by the entry of new providers. User-dependent exchange fees increased by just under 5 % to CHF 16.4 million.



Source: EXFEED

Other 2% Reuters 36%

Fides 2%

Infotec 3%

Bloomberg 29%

Telekurs 28%

AVERAGE SHAREOF MAJOR VENDORS IN PROFESSIONAL SEGMENT IN 2005

Source: EXFEED

Connection fees vendorsand subvendors

16.8%Exchange feesprofessionalsegment level-2 15.7%

Exchange feesprofessionalsegment level-1 50.4%

Exchange fees Internet non-professional, 16.9%

Hand held devices/phone services

0.2%

INCOME IN 2005

Total revenue rose by 5.9 % to CHF 19.8 million in the report-ing year. Thanks to savings on operating, administrative and marketing overheads, expenses were reduced by CHF 150 000. Operating profit before licence fees and taxes totalled CHF 11.4 million, up 12 % on the 2004 figure. Net earnings after licence fees and taxes came to CHF 2.2 million, compared with the year-earlier level of CHF 1.2 million.

As a result of the technical upgrades implemented in 2004, data availability and throughput were considerably enhanced. This showed up as significantly higher quality in day-to-day operation, with the added benefit that fewer customers had to call the company’s help desk.

Data flows for QuotematchProduct development during the reporting period focused on two new projects. Both are meant to further SWX’s strategic aim of becoming the leading exchange for securitized derivatives in Europe.

Quote Market Feed (QMF) is EXFEED’s third realtime data distribution service. It was specially designed to meet the requirements of market segments with very high transaction rates. With its built-in mechanism for optimizing data throughput, QMF can process up to 6000 updates per second and relay them to customers in periods of peak activity. It also provides what has so far been a unique func-tion, called scrubbing. This enables data users / vendors to set transmission capacity themselves, in accordance with the available communications bandwidths and their own system resources. The scrubbing mechanism ensures that for each individual customer, the most up-to-date quotes are always sent within the selected transaction rate per instru-ment. QMF was launched on 31 October 2005 to coincide with the introduction of Quotematch.

Overview of resultsRevenue CHF 19.8 million +5.9 %

Operating expenses CHF 8.3 million – 2.0 %

Operating profit CHF 11.4 million +12.0 %

Net earnings after licence fees and taxes CHF 2.2 million + 85.8 %




Derivatives core data and identification numbersEXFEED’s second project was intended to underpin the SWX Swiss Exchange’s growth strategy in the securitized deriva-tives segment. It led to a joint venture being established in August 2005 with dp Derivative Partners, an independent research firm based in Zurich. As a result of this alliance, EXFEED in mid-December launched a new optional service making it possible to offer high-quality core data and identi-fication numbers for all SWX-listed derivatives. In this infor-mation package, derivatives are classified on a uniform basis regardless of their individual name category, thus enabling a transparent presentation. Using the numerous identification numbers provided, products can then be compared and analysed with little effort. Term sheets are made available through PDF links for securitized derivatives strike terms.

Strategic challengesThe growing integration of Europe’s financial markets and, in particular, the new regulatory framework imposed by the Markets in Financial Instruments Directive (MiFID) repre-sent major hurdles for the data business. MiFID, which is expected to be implemented in the member countries until November 2007, will have a significant impact on financial markets and the existing value-added chain, and hence until market data services too. Technological innovations, such as direct market access and algorithmic trading, will further change the relationship between information providers and users. No detailed prognosis can be made as yet regarding either the extent or the exact nature of the repercussions in store.


EUREX – MOVING FURTHER AHEAD

Eurex further improved its earnings performance in the reporting year. EBIT in the SWX derivatives-trading segment (Eurex) declined to CHF 76.2 million, due to the new profit distribution ratio (85:15) between Deutsche Börse AG and the SWX Swiss Exchange which took effect in 2005. The increase in profits at Eurex was primarily the result of strict cost control. Revenue trends did not fully reflect the surge in trading volume, as fees for wholesale transactions in equity options and market-making operations were specifically reduced during the year.

Wider array of products and servicesEurex’s gratifying business development is driven by a port-folio of highly liquid European benchmark products, a tech-nological edge in derivatives trading and clearing, and a broad-based membership in Europe and the United States. With a view to diversifying its areas of success and exploiting new growth potential, Eurex is striving to expand its product and service offering. These ongoing efforts to build up new business areas are reflected in the development of trading and clearing services for additional on- and off-market trans-actions, as well as in the launch of new products.

The Eurex derivatives exchange is founded on an integrated business model that embraces trading, clearing and settle-ment. Eurex Clearing AG acts as central contracting party for the Frankfurt Stock Exchange and for over-the-counter trad-ing on the Eurex Repo (euro repo market) and Eurex Bonds platforms. In November 2005, the Eurex clearing house also performed this function for the Irish Stock Exchange. Com-bining the clearing operations of complementary markets provides scope for economies of scale and greater efficiency at the downstream end of the securities-trading process. For one thing, Eurex Clearing is extending its reach to other financial centres. For another, the preferred settlement solu-tions for each of these markets can be offered through tie-ins with other central securities depositories (CSDs, ICSDs). In this way, Eurex is helping to open the value-added chain and

Eurex registered a substantial increase of 17 % in trading volume in the reporting year. Euro Bund futures and options on

the same contract contributed substantially to the higher number of transactions observed in fixed income derivatives.

Growth in equity index instruments was fuelled primarily by brisker trading in futures and options on the DJ EURO STOXX 50®

and the DAX®. As regards equity options, turnover generated by options on leading Dutch, French and Italian blue chips

almost doubled in 2005, not to mention the solid growth posted by German and Swiss underlying stocks. Thanks to this strong

momentum, Eurex once again asserted its leadership position among derivatives exchanges and defended its global market

share.



140

120

100

80

60

40

20

0

Mar

ch

Janu

ary

2004 2005

Febr

uary

May

Apr

il

July

June

Aug

ust

Sep

tem

ber

Oct

ober

Nov

embe

r

Dec

embe

r

Source: Eurex

EUREX TRADING VOLUME 2004/2005

Millions of traded contracts

is positioning itself as a global contender in the provision of networked European trading and clearing services for mar-ket-based and OTC transactions.

Expanding worldwideWith roughly 400 members, 63 of them incorporated in the United States, Eurex boasts an excellent distribution net-work for euro-denominated benchmark products. In order to facilitate access to these products during the US business day, Eurex extended its trading hours to 10:00 pm CET last November.

Eurex also has a large investor base in the Asian time zones, even as Europe is showing keen interest in Asian index deriva-tives. Against this backdrop, Eurex signed an information-sharing agreement with Osaka Securities Exchange in June 2005 with the aim of boosting sales of financial derivatives in the Far East and broadening the two companies’ com-bined product range.

In 2005, Eurex rounded off its offering in existing asset classes and enriched its product mix by adding innovative types of new contracts. The launch of the Buxl® future in September covered the 30-year segment of the euro yield curve, a niche that has gained importance owing to the grow-ing volume of new long-dated Bund issues. In the equities and equity index segments, futures on the implied 30-day volatility of options on the Dow Jones EURO STOXX 50®, DAX® and SMI® indices were introduced, making the volatil-ity of these benchmarks a tradable asset class for the first time ever. Futures contracts on the SWX Swiss Exchange’s SMIM® index have also been on offer since September 2005.



18 000

16 000

14 000

12 000

10 000

8 000

6 000

4 000

2 000

0

20

00

20

01

20

02

20

03

20

04

20

05

1/2

00

5

2/2

00

5

3/2

00

5

4/2

00

5

5/2

00

5

6/2

00

5

7/2

00

5

8/2

00

5

9/2

00

5

10/2

00

5

11/2

00

5

12/2

00

5

1/2

00

6

Source: Eurex

MONTHLY VOLUMES SINCE OCTOBER 2000 (SINGLE COUNTING)

in EUR m

German Government Bonds

Basis

European (***) Government Bonds

Jumbos (*)

Agencies (**)

Bubills

European Covered Bonds

Eurex BondsIn the fixed income segment, Eurex operates a proprietary electronic trading platform, Eurex Bonds GmbH, in coopera-tion with eleven other stakeholders in the European bond-trading industry. A total of 33 international members belonged to Eurex Bonds at end-2005, including the Bundesbank and the Deutsche Finanzagentur.

Products traded on this over-the-counter market include Ger-man sovereign debt, non-interest-bearing Treasury bills, underlying instruments combining government bonds and futures, agency bonds, jumbo mortgage bonds and state government bonds. This list was further lengthened at end-2004 with the commencement of trading in European cov-ered bonds and corporate bonds, and again in June 2005 with the addition of Austrian and Dutch sovereign debt issues.

Turnover in the Eurex Bonds segment totalled EUR 149 billion in 2005, equivalent to an average monthly trading volume of EUR 12.4 billion.

European Energy Exchange (EEX)Eurex Zurich Ltd owns a 23.22 % stake in the European Energy Exchange (EEX) AG, incorporated in Leipzig. EEX uses Eurex’s technical and operating infrastructure to pro-cess and clear its trades. Transaction volume on EEX rose sharply in 2005, with forward business jumping 53 % year on year to 517 million MWh and spot business up 43 % to 85.7 million MWh.


53

Eurex Repo

This division of Eurex operates two repo markets featuring fully automatic clearing and settlement. The Swiss franc repo market is tied in with SIS

SegalnterSettle AG, while the euro segment is linked through Eurex Clearing AG’s central counterparty to Clearstream Banking Frankfurt / Luxembourg, SIS

SegalnterSettle AG and Euroclear.

SNB controls money supply through Eurex Repo

The Swiss National Bank implements its monetary policy by means of repo auctions, which are usually held daily. Commercial banks use these SNB-sponsored

auctions to regulate their short-term cash positions. The SNB accounts for roughly half of trading in Swiss franc repos and reverse repos.

Repos gain the upper hand

The movement away from traditional unsecured money market placements to repurchase agreements continued and even accelerated throughout 2005. More

and more banks recognize the advantages inherent in this form of credit financing, backed by top-quality securities.

The long-term trend towards securing near-term borrowing requirements can be seen in the growth of the Eurex repo markets. Fuelled by strong growth on the

interbank market, volume outstanding in the Swiss franc repo segment rose again in the reporting year, reaching over CHF 90 billion. Outstanding volume

in the euro repo segment set a new all-time record of over EUR 50 billion in 2005. Eurex Repo has seen business volume in the euro segment double every

year since 2001.

Eurex SecLend

As part of the extension of Eurex’s over-the-counter activities, Eurex SecLend (a subsegment of the Eurex repo markets) made its debut in September 2005.

Eurex SecLend is an electronic marketplace for the lending and borrowing of fixed income and equity paper. To kick off its operations, the unit signed up a

number of high-profile Swiss lenders and UK borrowers. International securities lending is an important business in all segments of the investment banking

and wealth management industries, where it can boost earnings significantly. Of the estimated USD 3 – 4 trillion of securities holdings in existence, only about

15 % – 20 % is lent out at present. SecLend offers member banks an efficient securities-lending service that can sweeten their profits and put a substantial

portion of idle assets to good use.

180 000

160 000

140 000

120 000

100 000

80 000

60 000

40 000

20 000

0

June

19

99

Aug

ust

199

9

Oct

ober

19

99

Dec

embe

r 19

99

Febr

uary

20

00

Apr

il 2

00

0

June

20

00

Aug

ust

20

00

Oct

ober

20

00

Dec

embe

r 2

00

0

Oct

ober

20

01

Dec

embe

r 2

00

1

Febr

uary

20

01

Apr

il 2

00

1

June

20

01

Aug

ust

20

01

Oct

ober

20

02

Dec

embe

r 2

00

2

Febr

uary

20

02

Apr

il 2

00

2

June

20

02

Aug

ust

20

02

Oct

ober

20

03

Dec

embe

r 2

00

3

Febr

uary

20

03

Apr

il 2

00

3

June

20

03

Aug

ust

20

03

Oct

ober

20

04

Dec

embe

r 2

00

4

Febr

uary

20

04

Apr

il 2

00

4

June

20

04

Aug

ust

20

04

Oct

ober

20

05

Dec

embe

r 2

00

5

Febr

uary

20

05

Janu

ary

20

06

Apr

il 2

00

5

June

20

05

Aug

ust

20

05

CHF SNBCHF InterbankEUR RepoSource: Eurex

EUREX REPO VOLUME OUTSTANDING


STOXX LIMITED – THE LEADER ACROSS EUROPE

The company’s core ETFs and derivatives business was suc-cessfully expanded. 45 % of all European exchange-traded funds (including three European frontrunners1) are now based on DJ STOXX indices, further consolidating STOXX’s leadership position among Europe’s index providers. The DJ EURO STOXX 50 index derivatives traded on Eurex also rank among the world’s most successful and liquid products in their class. Total assets under management of all ETFs cov-ered by DJ EURO STOXX 50 amount to EUR 12.8 billion.

With a market share of over 30 % (around EUR 335 billion) in futures and just under 50 % (some EUR 258 billion) in options, STOXX tops the ranking list of European index providers and stands second worldwide. In 2005 alone, 361 banks and other financial institutions in 33 countries co-operated with the company.

Alternative indicesBesides focusing on classics like DJ EURO STOXX 50, DJ STOXX 50, DJ STOXX 600 and DJ EURO STOXX, Europe’s foremost provider strove to develop new benchmarks enabling investors to buy into novel asset classes. These efforts led to the successful launch of next-generation vehicles based on the above flagship products. In April 2005, STOXX intro-duced the DJ EURO STOXX 50 Volatility Index (VSTOXX), Europe’s first volatility tracker. Based on the prices of highly

liquid options traded on Eurex, VSTOXX offers investors a tradable index that lays the groundwork for a broad array of compelling new investment products.

However, this was not the only trail blazed by last year. With the advent of the DJ STOXX Select Dividend 30 and the DJ EURO STOXX Select Dividend 30, Europe’s first two divi-dend-based indices, investors can benefit from shares with a high pay out ratio for the first time. Instead of being calcu-lated on the usual basis of market capitalization, the new benchmarks are weighted in accordance with dividend yields. This innovation meets a need for exposure to equal earnings chances and stability, a trend that has been impres-sively confirmed by the launch of a large number of products and three ETFs based on these parameters.

International know-howGiven its globally integrated index portfolio and close co-operation with Dow Jones Indexes, STOXX Ltd does not limit its activities to Europe. While 2004 had seen companies in emerging economies like Chile, Israel, Mexico and Puerto Rico opt for STOXX licences, the first customers in Australia were signed on last year.

1 Lyxor ETF DJ EURO STOXX 50 (Lyxor AM), iShares DJ EURO STOXX 50

(BGI), DJ EURO STOXX 50 EX (IndexChange)

The strategic realignment forced upon STOXX in 2004 has paid off, as have the synergies with Dow Jones Indexes aimed at

enhancing business performance. The positive influence of these changes was already felt tangibly in the early months of the

reporting year. In addition to its traditional lines of business, STOXX in 2005 continued to develop alternative asset classes

and extended the DJ STOXX index family with the invention of new kinds of benchmarks.



20000

18 000

16 000

14 000

12 000

10 000

8 000

6 000

4 000

2 000

0

12/2

00

0

12/2

00

1

12/2

00

2

12/2

00

3

12/2

00

4

1/2

00

5

2/2

00

5

3/2

00

5

4/2

00

5

5/2

00

5

6/2

00

5

7/2

00

5

8/2

00

5

9/2

00

5

10/2

00

5

11/2

00

5

12/2

00

5

Source: STOXX Ltd.

ASSETS UNDER MANAGEMENT OF EUROPEAN ETFs (BASED ON DJ STOXX/DJ INDEXES INDIZES)

in EUR m

4500

4000

3500

3000

2500

2000

1500

1000

500

0

Lyxo

r E

TF D

J E

UR

O S

TOXX

50

iSha

res

DJ

EU

RO

STO

XX 5

0

DJ

EU

RO

STO

XX 5

0 E

X

Lyxo

r E

TF C

AC

40

DA

X E

X

XMTC

H o

n S

MI

iSha

res

FTS

E 1

00

iSha

res

S&

P 5

00

Deu

tsch

e B

ank

DJ

EU

RO

STO

XX 5

0 D

VG

Source: STOXX Ltd.

TOP 9 EUROPEAN ETFs BY ASSETS UNDER MANAGEMENT

in EUR m

800

700

600

500

400

300

200

100

0

12/2

00

0

12/1

99

8

12/1

99

9

12/2

00

1

12/2

00

2

12/2

00

3

12/2

00

4

1/2

00

5

2/2

00

5

3/2

00

5

4/2

00

5

5/2

00

5

6/2

00

5

7/2

00

5

8/2

00

5

9/2

00

5

10/2

00

5

11/2

00

5

12/2

00

5

Source: STOXX Ltd., Eurex

FINAL INVENTORIES OF ALL DJ STOXX DERIVATIVES

in EUR bn


56

“ Within the context of self-regulation

embodied in the Stock Exchange

Act, the SWX Swiss Exchange plays

a central role in safeguarding the

interests of the Swiss financial centre.” Roland Maurhofer, Vice President, Admission Division, Project Management


Annual financial statements

Self-regulation

In exercising its regulatory responsibilities pursuant to the law, SWX has developed framework conditions which are acknow-

ledged as world-class. It is essential to continuously enhance this high level of quality, taking into account the requirements

of stakeholders of the SWX Swiss Exchange and recognized international standards. The unbridled zeal of supervisory autho-

rities around the globe, especially in the EU, confronts SWX and virt-x with important regulatory challenges. Thanks to its

flexibility, SWX can react rapidly and come up with innovative solutions, as it has shown with the new segmentation concept

for SMI issuers.


58 ContentsSWX Group Annual Report 2005

1. Financial position and results of operations 602. Consolidated income statement 613. Consolidated balance sheet 624. Consolidated statement of changes in equity 645. Consolidated cash flow statement 656. Notes to the consolidated annual financial statements 66 6.1 General information 66 6.2 General principles 66 6.2.1 Introduction 66 6.2.2 Changes in accounting standards 66 6.2.3 Principles of consolidation 66 6.3 Risk management 66 6.4 Scope of consolidation 68 6.4.1 List of consolidated companies 68 6.4.2 Changes in scope of consolidation 69 6.5 Accounting and valuation principles 70 6.5.1 Currency translation 70 6.5.2 Income recognition 70 6.5.3 Segment reporting 70 6.5.4 Balance sheet 71 6.5.4.1 Cash and cash equivalents 71 6.5.4.2 Securities 71 6.5.4.3 Short-term receivables and payables 71 6.5.4.4 Tax assets and liabilities 71 6.5.4.5 Tangible fixed assets 71 6.5.4.6 Intangible assets and goodwill 72 6.5.4.7 Associated companies 72 6.5.4.8 Deferred taxes 72 6.5.4.9 Provisions 73 6.5.4.10 Staff pension fund 73 6.6 Material differences between IFRS/IAS

and Swiss GAAP ARR in the preparation of the SWX Group’s annual financial statements 73

6.6.1 Changes in accounting and valuation principles 73 6.6.2 Material changes in presentation 74 6.6.3 Effect of changeover from Swiss GAAP ARR to IFRS 75


59ContentsSWX Group Annual Report 2005

7. Further notes 78 7.1 Related parties 78 7.2 Notes to the consolidated income statement 81 7.2.1 Revenue 81 7.2.2 Personnel expense 81 7.2.3 Staff pension fund 82 7.2.4 Capital taxes 83 7.2.5 Other operating expenses 83 7.2.6 Income from associated companies 84 7.2.7 Net financial income 84 7.2.8 Net interest income 84 7.2.9 Income taxes 85 7.3 Notes to the consolidated balance sheet 86 7.3.1 Cash and cash equivalents 86 7.3.2 Securities 86 7.3.3 Short-term receivables 87 7.3.4 Short-term loans 87 7.3.5 Prepaid expenses and accrued income 88 7.3.6 Deferred income taxes 88 7.3.7 Tangible fixed assets 89 7.3.8 Intangible assets 90 7.3.9 Associated companies 90 7.3.10 Short-term payables 91 7.3.11 Accrued expenses and deferred income 91 7.3.12 Tax liabilities 91 7.3.13 Long-term provisions 92 7.4 Other information 93 7.4.1 Segment data 93 7.4.2 Major contracts 94 7.4.3 Contingent liabilities 94 7.4.4 Post-balance-sheet events 948. Report of the Group auditors 969. Company financial statements of the SWX Group 98 9.1 Income statement 98 9.2 Balance sheet 99 9.3 Notes to the annual financial statements 101 9.3.1 Investments in subsidiaries 101 9.3.2 Guarantees and guarantee obligations

in favour of third parties 101 9.3.3 Equity 101 9.3.4 Proposal for appropriation of profit 10110. Report of the statutory auditors 102


60 Annual financial statementsSWX Group Annual Report 2005

There were 7956 securities listed on the SWX Swiss Exchange in 2005, i.e. 2068 more than in December 2004. This increase is mainly due to admissions of derivatives. Approximately 8258 applications for the admission of deriva-tives to trading were received last year, 38 % more than in 2004. The launch of the Quotematch platform in November 2005 and the adjustment of listing charges contributed sig-nificantly to this strong growth. Revenue from the admission segment rose by 10 % to CHF 19.6 million, despite the sub-stantial reduction in charges which took effect on 1 July 2005.

Earnings before interest and taxes (EBIT) in all segments except corporate services showed a positive trend in the reporting year. This segment’s costs also include expenditure in connection with the economy programme implemented in 2005, and a non-recurring contribution to the creation of the Swiss Finance Institute (a new educational initiative of the Swiss financial marketplace). It is encouraging to note that the Group’s core business accounted for CHF 34.2 million (31 %) of the good corporate results at EBIT level last year.

1. Financial position and results of operations

The SWX Group posted excellent results in 2005. Thanks to the good positioning of the Group and a favourable market environment, all divisions put in a successful performance. Revenue rose by 5.7 % and EBIT by 61 %. The non-recur-rence of various special factors – including total rebates of CHF 20 million granted to Exchange participants in 2004 and the write-off of investments amounting to CHF 7.2 mil-lion in connection with the US business of Eurex – contrib-uted to the improvement in earnings last year. Furthermore, several one-off payments received in 2005 boosted financial income by an aggregate CHF 8.8 million.

Due to the increase of 18 %, or CHF 1449 billion, in trading volume, revenue from the cash trading segment also rose to a record CHF 175.2 million (CHF 156.7 million in 2004). This is equivalent to daily trading turnover of CHF 5.6 bil-lion. 75 % of all trading turnover is conducted through virt-x in London, which nevertheless only generates 60 % of Group income.

The Eurex derivatives trading segment also set a new record with altogether 1.25 billion traded contracts in 2005, an increase of around 17 % on the 2004 figure. As a result of this good business trend, revenue rose by CHF 146.6 mil-lion.

At CHF 31.5 million, revenue from the data sales segment was up slightly in the reporting period. Approximately 80 % of this revenue (77 % in 2004) was generated by sales of realtime data. The number of end-users grew by 10 %, with customers tending to opt for the more expensive data pack-age available in the professional segment.


61Annual financial statementsSWX Group Annual Report 2005

2. Consolidated income statement

in CHF 1000 Note 2005 2004

INCOME STATEMENT

Trading fees 286 755 271 477

Information services 28 867 27 441

Admission 19 554 17 763

Other revenue 44 318 42 140

Total revenue 7.2.1 379 494 358 821

Personnel expense 7.2.2 (94 025) (88 780)

Capital taxes 7.2.4 (635) (1 009)

Agency agreement with Eurex (52 715) (55 290)

Repairs and maintenance (17 026) (17 215)

Public relations and marketing (5 549) (5 871)

Telecommunications (17 481) (15 972)

Rental expense (11 400) (9 431)

Fee payments to Swiss Federal Banking Commission (7 419) (9 408)

Consultancy and services (33 547) (24 911)

Programming costs (3 539) (9 037)

Miscellaneous operating expenses (9 800) (12 278)

Total other operating expenses 7.2.5 (158 476) (159 413)

Total operating expenses (253 136) (249 202)

Income from associated companies 7.2.6 9 860 (6 969)

Net financial income 7.2.7 8 832 (3 188)

Earnings before interest, taxes, depreciation and amortization (EBITDA) 145 050 99 462

Depreciation of tangible fixed assets 7.3.7 (14 541) (17 127)

Amortization of intangible assets 7.3.8 (20 105) (13 784)

Total depreciation and amortization (34 646) (30 911)

Earnings before interest and taxes (EBIT) 110 404 68 551

Net interest income 7.2.8 5 133 3 549

Earnings before taxes (EBT) 115 537 72 100

Income taxes 7.2.9 (26 290) (15 889)

PROFIT FOR THE YEAR 89 247 56 211



3. Consolidated balance sheet

in CHF 1000 Note 31.12.2005 31.12.2004

ASSETS

Cash, post office and bank current accounts 71 358 69 468

Time deposits (less than 90 days) 114 872 93 085

Total cash and cash equivalents 7.3.1 186 230 162 553

Securities with fair value 7.3.2 227 873 170 218

Total securities 227 873 170 218

Total cash and cash equivalents and securities 414 103 332 771

Short-term receivables 7.3.3 36 152 27 680

Short-term loans 7.3.4 4 112 3 441

Prepaid expenses and accrued income 7.3.5 3 569 4 867

Total current assets 457 936 368 759

Tangible fixed assets 7.3.7 11 794 15 459

Intangible assets 7.3.8 34 066 23 550

Associated companies 7.3.9 21 420 8 786

Deferred tax assets 7.3.6 993 1 711

Capitalized pension fund benefits 7.2.3 18 897 18 110

Total non-current assets 87 170 67 616

TOTAL ASSETS 545 106 436 375



in CHF 1000 Note 31.12.2005 31.12.2004

LIABILITIES AND EQUITY

Short-term trade payables (21 548) (13 706)

Other short-term payables (7 043) (11 678)

Total short-term payables 7.3.10 (28 591) (25 384)

Accrued expenses and deferred income 7.3.11 (31 225) (23 237)

Tax liabilities 7.3.12 (20 743) (15 854)

Total short-term liabilities (80 559) (64 475)

Deferred tax liabilities 7.3.6 (6 114) (5 647)

Pension fund liabilities 7.2.3 (3 971) (5 684)

Long-term provisions 7.3.13 (8 301) (3 166)

Total long-term liabilities (18 386) (14 497)

Total liabilities (98 945) (78 972)

Share capital (10 000) (10 000)

Capital reserve (242 535) (242 535)

Translation differences 743 254

Retained earnings (194 369) (105 122)

Total equity 4 (446 161) (357 403)

TOTAL LIABILITIES AND EQUITY (545 106) (436 375)



4. Consolidated statement of changes in equity

in CHF 1000Share

capitalCapital reserve

Translation differences

Retained earnings Total

STATEMENT OF CHANGES IN EQUITY

At 01.01.2004 10 000 242 535 (459) 48 911 300 987Translation differences 205 205

Profit for the year 56 211 56 211

At 31.12.2004 10 000 242 535 (254) 105 122 357 403

Translation differences (489) (489)


At 31.12.2005 10 000 242 535 (743) 194 369 446 161

The share capital of the SWX Group amounts to CHF 10 million and is divided into 10 000 registered shares with a nominal value of CHF 1000 each. The shares are fully paid in. Each share entitles the holder to one voting right.

The translation differences result from the conversion of the annual accounts of foreign subsidiaries.



5. Consolidated cash flow statement

in CHF 1000 2005 2004

CASH FLOW STATEMENT


Depreciation of non-current asset items 34 646 30 911

Deferred income tax receipts / (income tax charges) 1 185 34

Unrealized income from securities (1 688) 1 066

Income from holdings accounted for using the equity method (5 060) 10 969

(Increase) / decrease in short-term receivables (7 840) (2 266)

(Increase) / decrease in long-term receivables (787) (4 957)

Increase / (decrease) in short-term payables 3 178 (16 305)

Increase / (decrease) in accrued expenses and deferred income 12 877 (734)

Increase / (decrease) in tax liabilities 4 889 2 237

Increase / (decrease) in long-term liabilities (1 713) 1 333

Increase / (decrease) in long-term provisions 237 (1 831)

Other expenses / income with no impact on cash flow 49 138

Net cash provided by (used in) operating activities 129 220 76 806

Disbursements for investments in tangible fixed assets (10 877) (8 068)

Disbursements for investments in intangible assets (27 016) (6 170)

Investments in associated companies (7 574) (2 124)

Net disbursements for investments in subsidiaries (4 081) 0

Disbursements for investments in securities carried under current assets (55 995) (21 780)

Net cash provided by (used in) investing activities (105 543) (38 142)

Change in financial resources with impact on cash flow 23 677 38 664

Cash and cash equivalents at start of period 162 553 123 889

Cash and cash equivalents at end of period 186 230 162 553

Interest received 5 203 3 734

Interest paid (71) (185)

Income tax payments (19 326) (7 897)

Dividends received from associated companies 4 800 4 000



6. Notes to the consolidated annual financial statements

6.1 General informationThe holding company of the Group is the SWX Group, a joint-stock company governed by Swiss law with its registered office at Selnaustrasse 30, 8021 Zurich, Switzerland. The Swiss Stock Exchange (the SWX Swiss Exchange Associa-tion), an association governed by Swiss law with its regis-tered office at Selnaustrasse 30, 8021 Zurich, Switzerland, holds all the shares of the SWX Group.

In the year under review, the business activities of the SWX Group comprised the operation of the fully automated trad-ing, clearing and settlement system in use at the SWX Swiss Exchange, Zurich, Switzerland, and virt-x, London, United Kingdom, as well as the provision of further securities exchange services. Together with Deutsche Börse AG, the SWX Group also holds an interest in Eurex Zurich Ltd, Zur-ich, Switzerland, a derivatives exchange.

6.2 General principles 6.2.1 IntroductionThe consolidated annual financial statements of the SWX Group are prepared in accordance with the International Financial Reporting Standards (IFRS) laid down by the Inter-national Accounting Standards Board (IASB). The consoli-dated statements are based on historical acquisition costs, as well as the principle of specific valuation adjustments. Exceptions to this rule are mentioned in the following accounting and valuation principles.

6.2.2 Changes in accounting standards The consolidated annual financial statements for the year ended 31 December 2005 are the first to be prepared by the SWX Group using IFRS. In previous years, the statements were based on Swiss GAAP AAR. A detailed presentation of the changes compared with 2004 and their effect on the income statement and Group shareholders’ equity can be found in note 6.6.

6.2.3 Principles of consolidation The consolidated annual financial statements of the SWX Group comprise all subsidiaries directly or indirectly con-trolled by the Group through a majority of voting rights or by other means. Subsidiaries are fully consolidated from the date of their acquisition or from the date control was trans-ferred. The consolidated annual financial statements are based on the individual companies’ financial statements, which

are drawn up at 31 December using uniform accounting policies. The balance sheet date for the individual financial statements is the same as that for the Group’s accounts.

Companies which are not fully consolidated and on which the Group can exert a significant influence are accounted for using the equity method and carried under “Investments in associated companies”. The influence is normally consid-ered to be significant if the Group holds between 20 % and 50 % of the voting rights.

Other minority holdings (below 20 %) are stated at fair value.

Equity consolidationEquity is consolidated using the purchase method by offset-ting the cost of the investment against the proportion of equity accruing to the parent company at the date of acquisi-tion. Differences arising from this offset are allocated to the relevant balance sheet positions up to the effective value of the investment for the Group. Remaining differences which cannot be allocated are capitalized as goodwill under intan-gible assets.

Intragroup transactionsIntragroup expenses and income as well as intragroup receiv-ables and payables are netted. Unrealized gains on intra-group transactions are eliminated.

Effects of intragroup transactions are eliminated when pre-paring the consolidated financial statements.

The figure for revenues corresponds to billings for services and products delivered to third parties, less sales taxes and payment reductions.

6.3 Risk management In order to ensure a risk-conscious approach to business management, the SWX Group has drawn up a risk manage-ment concept geared to systematic and transparent monitor-ing procedures for strategic, financial and operative risks. This structured approach is designed to underpin the deci-sion-making process at all levels in the implementation of corporate objectives.

Current risk policy defines the principles to be followed in dealing with risks. The category system is divided into three groups, each of which has its own methodology and manage-ment procedures. Results are reported to stakeholders in line with the requirements at different hierarchical levels.



Strategic Risks Financial Risks Operational Risks

SWXRisks

Strategic Risks

Reputational Risks

Operational Risks

Market & Financial Risks

Investment Risks

Business Risks

Strategic risks Strategic risks comprise changes in the operating environ-ment over which the Group has no direct influence (such as competition, economic cycles, market and sector develop-ments) as well as potential losses arising from subsidiaries and external changes.

Financial risksFinancial risks are given particular prominence within the context of treasury policy, based on the relevant internal directive issued by the Group Executive Committee. This directive covers in-house investment guidelines and estab-lishes objectives, types of investing activity, responsibilities and principles of supervision. Treasury policy is implemented centrally. Management of investments may be delegated to third parties, taking into account the established principles. The Group’s investing activities are conducted in conformity with the directives governing investments by staff pension funds, with the exception that no direct investments in shares are allowed. Investments are made on the premise that willingness to pay exists at all times.

a) Interest rate risksInterest rate risks arise from changes in interest rates which could have negative repercussions on the Group’s financial position or the results of its operations. Interest rate fluctua-tions lead to changes in interest income and expense arising from interest-bearing assets and liabilities. In addition, as explained in the following section on market risks, they may have an impact on the market value of some financial assets and instruments. As the SWX Group has no significant inter-est-bearing liabilities, any fluctuations in rates could primar-ily affect the value of interest-bearing securities.

b) Exchange rate risksThe SWX Group operates internationally and is therefore subject to exchange rate fluctuations, which can affect the

value of assets and earnings denominated in Swiss francs. Foreign currency risks are regularly monitored and, depend-ing on market developments, these risks are hedged. On the other hand, transaction risks arising from changes in exchange rates in connection with SWX’s operating business are not hedged at present. A large proportion of revenue and expenses is generated in Swiss francs. Exchange differences arising from the translation of subsidiaries’ accounts drawn up in foreign currencies are carried under Group equity.

c) Market risksChanges in the market value of financial assets, liabilities or financial instruments can have an impact on the SWX Group’s assets and the results of its operations. Securities are held by the SWX Group as part of its cash management policy. Risks of a possible loss in value are minimized by means of internal analysis, and regular monitoring of perform-ance and risks associated with the relevant investments.

d) Credit risksCredit risks arise from the possibility that the counterparty to a transaction is unable or unwilling to meet its commitments and that the SWX Group will incur financial damage as a result. Under the Group’s cash management policy, only bor-rowers with a very good credit rating are considered for lend-ing operations, thereby minimizing counterparty risk. In addition, payments received and amounts outstanding in connection with receivables for deliveries and services are regularly monitored.

e) Derivative financial instrumentsThe SWX Group does not trade in derivative financial instru-ments for its own account. However, these instruments may be used within the context of external management con-tracts for Group cash management purposes, or to hedge underlying balance sheet transactions. No hedging opera-tions have been conducted to date.



Operational risks Operational risks involve potential losses stemming from inadequacies or failures relating to internal processes, peo-ple and systems, or from external events. Legal risks are included in this group, as well as project risks, which are monitored within the framework of normal project manage-ment, and system availability risks.

Reputational risks arise from events which can damage the reputation and public image of SWX. These risks often stem from the other risk groups.

SWX is strongly exposed to reputational risks in connection with the handling of confidential information. Furthermore, as part of its regulatory duties it must ensure compliance with directives in order to guarantee fair trading. If these duties were not performed optimally – whether intentionally or unintentionally – this would also harm the image of SWX.

6.4 Scope of consolidation6.4.1 List of consolidated companies

· SWX Group, Zurich, Switzerland (formerly SWX Holding AG); parent company; share capital CHF 10 000 000.

· SWX Swiss Exchange, Zurich, Switzerland (wholly owned); share capital CHF 10 000 000; securities exchange and securities exchange services.

· virt-x Ltd, London, United Kingdom (wholly owned); share capital GBP 2 793 000; holding company of virt-x group.

· virt-x Exchange Ltd, London, United Kingdom (wholly owned); share capital GBP 100; securities exchange.

· EXFEED Ltd, Zurich, Switzerland (wholly owned); share capital CHF 1 100 000; financial information provider.

· SWX Swiss Exchange UK Ltd, London, United Kingdom (wholly owned); share capital GBP 1; dormant.

· New Soffex Ltd, Zurich, Switzerland (wholly owned); share capital CHF 100 000; dormant.

· Bremer Wertpapierbörse AG, Bremen, Germany (wholly owned); share capital EUR 130 000; securities exchange and securities exchange services.

Holdings in the following companies are accounted for using the equity method:

· Eurex Zurich Ltd, Zurich, Switzerland (50 % stake); share capital CHF 10 000 000; European derivatives exchange. On 13 December 2004, the Articles of Association of Eurex Zurich Ltd were amended to incorporate new provisions governing dividend and liquidation entitlements in respect of the existing dividend-right certificates. Consequently, the share in net income is now calculated at 15 % (2004: 20 %), taking the dividend-right certificates into account. The share in voting rights is unchanged at 50 %.



Eurex Zurich Ltd directly or indirectly controls the following substantive companies:

· Eurex Frankfurt AG, Frankfurt, Germany; share cap-ital EUR 6 million; operation of exchanges, in par-ticular securities exchanges, including electronic platforms for derivatives trading.

· Eurex Clearing AG, Frankfurt, Germany; share capital EUR 5.1 million; clearing house and operator of the clearing system for exchange transactions.

· Eurex Bonds GmbH, Frankfurt, Germany; share cap-ital EUR 3.6 million; electronic trading platform for German government bonds, Jumbo-Pfandbriefe (mortgage bonds) and other debt securities, as well as underlying instruments combining futures and a government bond.

· Eurex Repo GmbH, Frankfurt, Germany; share cap-ital EUR 100 000; investment intermediary, arranges sale and repurchase agreements (repos) for short-term financing purposes.

· U.S. Exchange Holding Inc., USA; share capital USD 1 million; parent company of the U.S. Futures Exchange L.L.C., USA.

· U.S. Futures Exchange L.L.C., USA; share capital USD 44.5 million; fully automated trading in US fixed income and share index derivatives.

· STOXX Limited, Zurich, Switzerland (33.3 % stake); share capital CHF 1 000 000; marketing of European index fam-ilies.

· Stock Exchange Intelligence Ltd, Basel, Switzerland (33.3 % stake); share capital CHF 150 000; promotional activities for the Basel financial marketplace, operates Financial Meeting Point in Basel.

6.4.2 Changes in scope of consolidationThe SWX Group acquired all the voting shares of Bremer Wertpapierbörse AG (BWB), Bremen, on 4 July 2005. The Group’s intention is to start trading in securitized derivatives in Germany. During the reporting year, work went ahead on a project to set up a fully electronic trading platform over the medium term and integrate it into Germany’s securities trad-ing system environment.

The fair value of identifiable assets and liabilities of BWB at the time of acquisition is shown in the following table:

in CHF 1000At time of

acquisition Stated valueCash and cash equivalents 12 12

Trade receivables 5 5

Financial investments 510 510

Total assets 527 527

Trade payables 29 29

Provisions 9 9

Total liabilities 38 38

Fair value of assets 527 527

Goodwill from acquisition 3 605 3 605

The acquisition price was CHF 4 093 000 and was paid in cash.

Cash flow in connection with the acquisition:

Net cash inflow due to acquisition of BWM CHF 12 000

Acquisition price CHF 4 093 000

Total cash outflow CHF 4 081 000

Since the acquisition, BWB has contributed CHF 96 000 to the SWX Group’s profit. If the acquisition had taken place at the beginning of the financial year, BWB’s profit would have amounted to CHF 92 000 and the SWX Group’s consolidated profit would have been CHF 89 243 000.



6.5 Accounting and valuation principles6.5.1 Currency translationThe consolidated annual financial statements of the SWX Group are drawn up in CHF.

Transactions denominated in foreign currencies are trans-lated using daily exchange rates. On the balance sheet date, monetary items denominated in foreign currencies are val-ued at the rate prevailing on the reporting date. Non-mone-tary items are translated at the historical rate (the rate on the date of the transaction or determination of fair value). Trans-lation differences are carried to the income statement.

For purposes of consolidation, the financial statements of units operating in a currency other than CHF are translated using the reporting date method. Assets and liabilities are translated at the exchange rate prevailing on the balance sheet date, and the income statement at the average rate for the reporting year. Translation differences are accounted for directly under equity as a separate item.

The following exchange rates for CHF were used:

Currency Year-end rate Average annual rate

31.12.05 31.12.04 2005 2004

EUR 1.5578 1.5457 1.5483 1.5441

GBP 2.2701 2.1834 2.2642 2.2788

USD 1.3153 1.1371 1.2459 1.2429

6.5.2 Income recognitionIncome basically corresponds to billings for services and products, less sales taxes and payment reductions. Services not yet billed are booked to the appropriate period at the balance sheet date.

Fees for cash trading on the SWX Swiss Exchange and virt-x platforms are recorded in the trading system and billed to participants on a monthly basis.

Clearing fees for derivatives trading are also recorded in the trading system and billed to participants on a monthly basis.

Receipts from stock exchange information services encom-pass base and exchange fees of EXFEED Ltd, as well as income from the TIF (Transparency in the Fund Market) programme and other information services provided by the SWX Swiss Exchange. These services are normally billed on a monthly basis.

Fees for a new listing are billed after the listing is completed, while those for maintenance of listings are invoiced annually.

Income from other services is recognized after the service in question has been performed.

At 31 December 2005, there were no projects to be accounted for using the “percentage-of-completion” method.

6.5.3 Segment reportingSegment reporting reflects the service offering of the SWX Group. The primary segmentation comprises the following business areas: cash trading, Eurex derivatives trading, data sales, admission and corporate services. Fully consolidated Group companies operate exclusively in Europe and there-fore have a very similar profile in terms of political and mar-ket-related risks. For this reason, it was decided to dispense with a geographical secondary segmentation.

Description of segments:Services in connection with the operation of the SWX Swiss Exchange and virt-x are assigned to the cash trading seg-ment.

Eurex Zurich Ltd is a derivatives exchange run by the SWX Swiss Exchange and Deutsche Börse AG. All services related to this activity are grouped together in the Eurex derivatives trading segment.

The data sales segment comprises the processing and mar-keting of raw financial data to banks and other suppliers of financial information.

The admission segment handles applications for the listing of securities and verifies listing particulars and listing notices, as well as monitoring compliance with legal and reg-ulatory requirements concerning the maintenance of listing.

All services which cannot be allocated to the above segments are assigned to the corporate services segment. Most of these are IT services.



6.5.4 Balance sheet6.5.4.1 Cash and cash equivalentsCash and cash equivalents comprise cash, credit balances with banks and the post office as well as call and time deposits with original maturities of up to 90 days. Cash and cash equivalents are carried at nominal value.

6.5.4.2 SecuritiesSecurities are stated at fair value. Purchases and sales are recorded on the execution date. Gains and losses are calcu-lated using average acquisition prices and are carried in the income statement. A distinction is made between realized and unrealized gains or losses.

Time deposits invested for longer than 90 days not exceed-ing 1 year are booked at nominal value.

Securities listed on an exchange are valued at their market price.

Securities with no market value are shown at their calculated market value or reported net asset value. The market value of such securities is calculated on the basis of probable future payment flows. In the case of investment funds (including hedge funds), net asset value is determined on the basis of reports from banks or fund managers.

Financial investments held to maturity are recorded at amor-tized costs using the effective interest rate method. Such an investment is considered to be impaired if it appears likely that not all of the amount owed can be recovered. Reasons for impairment are of a counterparty- or country-specific nature. If an impairment has occurred, the book value is reduced to the recoverable amount and carried to the income statement. Interest is booked to the appropriate period using the effective interest rate method and treated as income.

6.5.4.3 Short-term receivables and payablesThe value shown corresponds to billings less necessary amortization.

Short-term payables are recorded in line with invoices received from suppliers and service providers, and booked to the appropriate period.

Loans are valued at amortized costs using the effective inter-est method. Specific provisions are issued for default risks.

6.5.4.4 Tax assets and liabilitiesThe amounts reported under this heading concern current income taxes. They are calculated and booked on the basis of the tax assessment.

6.5.4.5 Tangible fixed assetsTangible fixed assets are stated at acquisition or production cost less planned depreciation charged over the useful life of the assets, and using the straight-line method. The useful life is estimated to be as follows:

IT hardware 3 yearsEquipment, fixtures and fittings 3 yearsVehicles 3 yearsLeasehold improvements Duration of rental contract

In the event of indicators or other relevant changes which could lead to a decline in the value of tangible fixed assets, an impairment review is conducted to re-assess their value. The purpose of this review is to ascertain whether, on the basis of probable future cash flows, the market value or time value is less than the carrying value. If this is the case, the market value or time value is depreciated in accordance with IAS 36.

Economic goods with a value below CHF 10 000 are depreci-ated immediately. Repair and maintenance costs are booked as expenses as and when they are incurred.

Expenditure on renovation work and essential improvements is capitalized.

Tangible fixed assets used under leasing contracts are capit-alized and depreciated in accordance with IAS 17, if the conditions for finance leases are met. The SWX Group has no such leasing contracts at present.



6.5.4.6 Intangible assets and goodwillComputer programmes which are purchased from or devel-oped by a third party and cost more than CHF 10 000 are capitalized and amortized over no more than three years.

Internally developed software is capitalized at production costs and written off over an estimated useful life of five years, provided that the recognition criteria specified in IAS 38 are met on a cumulative basis.

Production costs comprise directly attributable personnel costs (employees and external consultants) and workplace costs, including an allocation of indirect costs. Overheads and interest expense are not included in production costs. Only costs accruing during the development phase are capit-alized, not those for planning and administration.

Special write-offs are made for internally developed software which is no longer in use or whose future useful life is shorter than originally expected.

Other intangible assets acquired, such as patents, trade-marks and other rights, are capitalized at cost and – within the context of corporate takeovers – at fair value, and amor-tized over their estimated useful life (but not more than ten years) using the straight-line method. The amortization is charged to the income statement.

For the recording and valuation of goodwill, reference is made to the explanations under “Principles of consolidation”.

Intangible assets and goodwill are capitalized on the balance sheet at cost at the time of acquisition and amortized over their estimated useful life, but not more than 20 years. A review is conducted on every balance sheet date to deter-mine whether there are indications of an impairment or a change in their probable future use. Should this be the case, it is ascertained whether the book value of the goodwill or the other intangible assets can be recovered in full. If the book value exceeds the realizable value, the asset is written down.

Goodwill arising from corporate mergers is not amortized according to plan, but its value is re-assessed every year. In the event of a decline in value, a special amortization is made.

6.5.4.7 Associated companiesAssociated companies are consolidated using the equity method and are accounted for in proportion to the share of capital owned.

Goodwill contained in the acquisition cost of shareholdings in associated companies is capitalized and carried sepa-rately under intangible assets. In the event of indicators or other relevant changes which could lead to a decline in the value of associated companies (including goodwill), an impairment review is conducted to re-assess their value. The purpose of this review is to ascer-tain whether, on the basis of probable future cash flows, the market value or economic value is less than the carrying value. In the case of non-temporary impairment, a valuation adjustment is made.

6.5.4.8 Deferred taxesDeferred taxes are accounted for using the comprehensive liability method. Under this method, the effects on income tax of temporary differences between intragroup carrying values and those used for tax assessment purposes are recorded as long-term liabilities or other non-current assets. The effective tax rates are the determining factor. Changes in deferred taxes are booked to tax expense.

Deferred tax liabilities are calculated on all taxable tempor-ary differences. Deferred tax assets, including those for loss carry-overs that can be used for tax purposes as well as for expected tax credits, are only taken into account if it is prob-able that future profits will be available, against which the receivables can be offset for tax purposes.



6.5.4.9 ProvisionsProvisions are set aside for present legal, de facto or con-structive obligations which have their origin in a past event. They are only shown on the balance sheet if a future outflow of funds resulting from these obligations is likely, and can be reliably estimated. Provisions are calculated on the basis of uniform and invariable business management principles. 6.5.4.10 Staff pension fundFor the purpose of administering its staff pension fund, the SWX Swiss Exchange is a member of the PREVAS collective foundation (Vorsorgekasse of the SWX Swiss Exchange, Zur-ich). The SWX Group also runs a welfare fund (SWX Group Wohlfahrtsfonds, Zurich). In addition to covering the com-pulsory insurance under the federal occupational pensions law (LPP / BVG), the SWX staff pension fund provides bene-fits which exceed the legal minimum requirements. The pen-sion fund is a defined contribution plan and is financed by employer and employee contributions.

Under IAS 19, however, the pension fund is a defined ben-efit plan. Pension obligations are periodically measured by independent actuaries.

Total pension liabilities are compared with the fair value of plan assets. Any surplus or deficit of the present value of liabilities in relation to assets measured at market value is carried on the consolidated balance sheet as a liability or asset, taking into account actuarial gains or losses which have not yet been recorded. A surplus is only recognized if it represents an economic benefit for the company as a result of reductions in contributions. Unrecognized actuarial gains or losses are amortized over the average remaining service life of insured members, provided that they exceed the “cor-ridor”. The corridor is 10 % of the present value of liabilities or 10 % of assets, whichever is higher. Employer reserves are capitalized.

The purpose of the SWX Group Wohlfahrtsfonds is to provide voluntary additional benefits on top of amounts paid out under the pension fund regulations covering old age, dis-ability and death, as well as assistance for employees and their survivors in difficulty due to illness, accident, disability or unemployment. It is financed by the SWX Swiss Exchange, STOXX Ltd and Eurex Zurich Ltd.

Assets of the SWX Group Wohlfahrtsfonds are taken into account for the calculation of a surplus or deficit of all the Group’s employee benefit plans.

6.6 Material differences between IFRS / IAS and Swiss GAAP ARR in the preparation of the SWX Group’s annual financial statementsFor the first time, the SWX Group is basing its 2005 annual financial statements on IFRS. The effective changeover date from Swiss GAAP ARR to the new accounting standards was 1 January 2004. The last consolidated financial statements drawn up under Swiss GAAP ARR were for the year ended 31 December 2004.

6.6.1 Changes in accounting and valuation principlesThe changeover to IFRS in the reporting year necessitated material adjustments in accounting and valuation principles as set out below. In the interest of clarity, minor changes are not commented upon separately. The previous year’s figures were adjusted accordingly.

Currency translationThe accounting treatment of translation differences in non-monetary items is now analogous to that of valuation adjust-ments in these items.

Segment reportingSegments were redefined to reflect the service offering of the SWX Group. More detailed information is provided in note 6.5.3.

Intangible assetsGoodwill contained in the acquisition value of a holding, if any, is no longer written off according to plan but is submit-ted to an annual impairment review.

Post-employment benefits The staff pension fund is a defined benefit plan under IFRS, in contrast to Swiss GAAP ARR. Benefit obligations are peri-odically measured by independent actuaries.

Total pension liabilities are compared with the fair value of plan assets. Any surplus or deficit of the present value of liabilities in relation to assets measured at market value can be carried on the consolidated balance sheet as a liability or asset. A surplus or deficit may also be amortized over the average remaining service life of insured members.



6.6.2 Material changes in presentationAs a result of the changeover to IFRS, the following balance sheet items were reclassified or shown for the first time:· Separation of securities into securities with market value, available-for-sale securities and securities held to final maturity

· Reclassification of deferred tax assets from current assets to non-current assets

· Statement of capitalized benefits and / or liabilities arising from staff pension fund (no statement previously)

· Separate statement of translation differences (carried under retained earnings previously)

The following income statement items were further subdi-vided or reclassified:· Revenue is further subdivided· Expenses are further subdivided· Capital and income taxes are accounted for separately. Capital taxes are now considered to be part of operating expenses

· Income from associated companies is recorded separately (part of financial income previously)

· Other expense and other revenue are part of operating income

The cash flow statement has been expanded as follows:· More detailed breakdown of cash flows arising from operat-ing, investing and financing activities

· A new footnote provides information on interest paid, in-come taxes and interest received, as well as dividends from associated companies



in CHF 1000

Swiss GAAP ARR at

01.01.04

Effect of changeover

to IFRS NoteIFRS at

01.01.04

Swiss GAAP ARR at

31.12.04


to IFRS NoteIFRS at

31.12.04

Cash and cash equivalents 123 889 0 123 889 162 553 0 162 553

Securities with fair value 149 504 0 149 504 170 218 0 170 218

Total cash and cash equivalents and securities 273 393 0 273 393 332 771 0 332 771

Short-term receivables 24 994 0 24 994 27 680 0 27 680

Short-term loans 4 584 0 4 584 3 441 0 3 441

Total short-term receivables 29 578 0 29 578 31 121 0 31 121

Prepaid expenses and accrued income 4 145 0 4 145 4 867 0 4 867

Total current assets 307 116 0 307 116 368 759 0 368 759

Tangible fixed assets 24 453 0 24 453 15 459 0 15 459

Intangible assets 31 163 0 31 163 23 230 320 3 23 550

Associated companies 17 631 0 17 631 8 786 0 8 786

Total non-current assets 73 247 0 73 247 47 475 320 47 795

Deferred tax receivables 696 1 088 1 1 784 290 1 421 2 1 711

Capitalized benefits arising from staff pension fund 0 13 153 1 13 153 0 18 110 2 18 110

Total long-term assets 73 943 14 241 88 184 290 19 851 67 616

TOTAL ASSETS 381 059 14 241 395 300 416 524 19 851 436 375

6.6.3 Effect of changeover from Swiss GAAP ARR to IFRSThe following table shows a condensed reconciliation of balance sheet figures between Swiss GAAP ARR and IFRS at 1 January 2004 and 31 December 2004:



in CHF 1000

Swiss GAAP ARR at

01.01.04


to IFRS NoteIFRS at

01.01.04

Swiss GAAP ARR at

31.12.04


to IFRS NoteIFRS at

31.12.04

Trade payables 24 043 0 24 043 13 706 0 13 706

Other short-term payables 15 485 0 15 485 11 678 0 11 678

Total short-term payables 39 528 0 39 528 25 384 0 25 384

Accrued expenses and deferred income 27 053 0 27 053 23 237 0 23 237

Tax liabilities 13 617 0 13 617 15 854 0 15 854

Total short-term liabilities 80 198 0 80 198 64 475 0 64 475

Deferred tax liabilities 2 398 3 288 1 5 686 1 039 4 608 2 / 3 5 647

Liabilities to staff pension fund 0 4 351 1 4 351 0 5 684 2 5 684

Long-term provisions 4 076 0 4 076 3 166 0 3 166

Total long-term liabilities 6 474 7 639 14 113 4 205 10 292 14 497

Total liabilities 86 672 7 639 94 311 68 680 10 292 78 972

Share capital 10 000 0 10 000 10 000 0 10 000

Capital reserve 242 535 0 242 535 242 535 0 242 535

Translation differences (459) 0 (459) (254) 0 (254)

Retained earnings 42 311 6 602 1 48 913 95 563 9 559 4 105 122

Total equity 294 387 6 602 300 989 347 844 9 559 357 403

TOTAL LIABILITIES AND EQUITY 381 059 14 241 395 300 416 524 19 851 436 375



in CHF 1000Swiss GAAP

FER 2004Effect of change-

over to IFRS NoteIFRS2004

Revenue 358 821 0 358 821

Compensation (60 893) 0 (60 893)

Social security payments (20 881) 3 624 2 (17 257)

Other personnel costs (10 630) 0 (10 630)

Total personnel expense (92 404) 3 624 (88 780)

Capital taxes (1 009) 0 (1 009)

Other operating expenses (159 413) 0 (159 413)

Total operating expenses (252 826) 3 624 (249 202)

Income from associated companies (6 969) 0 (6 969)

Net financial income (3 188) 0 (3 188)

EBITDA 95 838 3 624 99 462

Depreciation and amortization of fixed and intangible assets (31 231) 320 3 (30 911)

EBIT 64 607 3 944 68 551

Net interest income 3 549 0 3 549

EBT 68 156 3 944 72 100

Deferred income taxes 952 (986) 2 / 3 (34)

Income taxes (15 855) 0 (15 855)

Total income taxes (14 903) (986) (15 889)

PROFIT FOR THE YEAR 53 253 2 958 56 211

The calculation and presentation of balance-sheet and income-statement items under Swiss GAAP ARR have been adjusted to comply with IFRS.

Note 1The staff pension fund of the SWX Group is a defined benefit plan under IAS 19. Following the calculations made by external actuaries at 1 January 2004, its assets and liabilities are therefore carried on the balance sheet, taking into account deferred income taxes. Due to the adjustments mentioned above, equity rose by a net amount of CHF 6.6 million at 1 January 2004.

The following table shows the reconciliation of the income statement in accordance with Swiss GAAP ARR and IFRS for 2004:



Note 2The staff pension fund of the SWX Group is a defined benefit plan under IAS 19. Owing to the revaluation of pen-sion assets and liabilities by external actuaries, a gain of CHF 3.6 million was recognized in the income statement at 31 December 2004.

Note 3In compliance with IAS 36, goodwill is no longer written off according to plan. The goodwill amortization of CHF 0.3 mil-lion required by Swiss GAAP ARR was therefore cancelled and booked to the income statement for 2004, taking into account deferred taxes.

Note 4As a result of the adjustments mentioned above, profit for 2004 rose by CHF 2.9 million, taking into account deferred income taxes.

7. Further notes

7.1 Related partiesBased on IAS 24, the following persons and entities qualify as related parties within the context of the SWX Group’s normal business operations:

Parent companySwiss Stock Exchange (SWX Swiss Exchange Association), Selnaustrasse 30, 8021 Zurich, Switzerland

The Swiss Stock Exchange is always referred to as the SWX Swiss Exchange Association in the annual financial state-ments. Parties with joint controlMembers of the Swiss Stock Exchange(the SWX Swiss Exchange Association):

Name Location

ABN Amro Bank Zurich

Banca del Gottardo Lugano

Bank am Bellevue Küsnacht

Bank CIAL (Schweiz) Basel

Bank Hofmann AG Zurich

Bank Julius Bär & Co. AG Zurich

Name Location

Bank Leu AG Zurich

Bank Sal. Oppenheim Jr. & Cie. (Schweiz) Zurich

Bank Sarasin & Cie. Zurich

Bank Vontobel AG Zurich

Banque Bonhôte & Cie. SA Neuchâtel

Banque Cantonale de Genève Geneva

Banque Cantonale Vaudoise Lausanne

Banque de Dépôts et de Gestion Lausanne

Banque Piguet & Cie. SA Geneva

Banque Privée Edmond de Rothschild S.A. Geneva

Basler Kantonalbank Basel

BNP Paribas Private Bank (Switzerland) SA Zurich

BSI SA Lugano

BZ Bank Aktiengesellschaft Wilen

Cornèr Banca S.A. Lugano

Coutts Bank von Ernst AG Zurich

Credit Agricole Indosuez Lausanne

Credit Lyonnais (Suisse) SA Zurich

Credit Suisse Zurich

Credit Suisse First Boston Zurich

Deutsche Bank (Schweiz) AG Zurich

Dreyfus Söhne & Cie. AG, Banquiers Basel

EFG Private Bank SA Geneva

E. Gutzwiller & Cie., Banquiers Basel

Ehinger & Armand von Ernst AG Zurich

Fortis Bank (Nederland) N.V. Frankfurt Branch Frankfurt

Goldmann, Sachs & Co. Bank Zurich

Hottinger & Cie., Banquiers Zurich

HSBC Private Bank (Suisse) SA Geneva

ING Bank (Switzerland) Ltd Geneva

La Roche & Cie., Banquiers Basel

LGT Bank in Liechtenstein AG Vaduz

Liechtensteinische Landesbank AG Vaduz

Lombard Odier Darier Hentsch & Cie. Geneva

Maerki Baumann & Co. AG Zurich

Merrill Lynch Capital Markets AG Zurich

Mirabaud & Cie., Banquiers Geneva

Pictet & Cie., Banquiers Geneva

Privatbank IHAG Zurich AG Zurich

Rahn & Bodmer, Banquiers Zurich

Rüd, Blass & Cie. AG, Bankgeschäft Zurich



Key managementKey management in the reporting year comprised the Board of Directors of the Swiss Stock Exchange (the SWX Swiss Exchange Association), which is identical to that of the SWX Group, as well as the members of the Management Commit-tee of the SWX Swiss Exchange (shown with an asterisk after their name in the following list):

Andreas Amschwand

Walter Berchtold

David J. Blumer

Dr. Raymond Breu

Werner Bürki (*)

Jean-Luc De Buman

Jacques de Saussure

Bernard Droux

Hans Fischer

Dr. Reto Francioni

G. Andreas Guth

Andreas Häberli

Dr. Heinrich Henckel (*)

Reto Himmel

Lee Hodgkinson (*)

Daniel Keist (*)

Peter Keller (*)

Chris Landis (*)

Eduardo Leemann

Yves Maas

Bruno Meier

Peter R. Rahn

Jürg Spillmann (*)

Stephan Zimmermann

Associated companies

Other related parties

The information required by IAS 24.17 on related parties is disclosed directly in the relevant positions. Where this is not possible, this information is given below.

In principle, services are billed on an arm’s length basis. The most important terms and conditions governing the exchange of services between the SWX Group and related parties are as follows:

SWX Swiss Exchange AssociationThe SWX Swiss Exchange is the collecting agency for fines imposed by the Disciplinary Commission. Proceeds from the fines are credited to the Solidarity Fund of the SWX Swiss Exchange Association. In addition, other payments are trans-acted through the current account maintained by the two entities.

Parties with joint controlRevenue and expenses relating to parties with joint control reflect transactions conducted on prevailing market terms. Amounts outstanding at year-end are not hedged and are settled in cash. There are no guarantees provided in respect of parties with joint control. No provisions were issued at the end of the year for doubtful receivables from parties with joint control. Outstanding debts are monitored on a continu-ous basis and reviewed for long-term impairment no later than at year-end.

Name Location

Eurex Zurich Ltd Zurich· Eurex Frankfurt Frankfurt· Eurex Clearing AG Frankfurt· Eurex Bonds GmbH Frankfurt· Eurex Repo GmbH Frankfurt· U.S. Holding Inc. Chicago· U.S. Futures Exchange L.L.C. Chicago

STOXX Ltd Zurich

Stock Exchange Intelligence Ltd Basel

Name Location

SWX Group Welfare Fund Zurich

Name Location

SG Private Banking (Suisse) SA Geneva

Société de Bourse Lémanique Lausanne

Société Générale, Paris Zurich

Swissnetbank.com AG Zurich

Timber Hill (Europe) AG Zug

UBS AG Zurich

Union Bancaire Privée Geneva

Zürcher Kantonalbank Zurich



Associated companiesThe most important business relationships with associated companies are set out in the table below. All transactions were conducted at prevailing market prices.

Key management Members of the SWX Swiss Exchange Board of Directors are paid a fixed annual remuneration. Members of the management also receive a variable, profit-related salary component, to which there is no legal claim. The following table gives an overview of compensation for the SWX Swiss Exchange key management:

Compensation includes pro rata expenses incurred in the reporting period. The amount actually paid may differ from the amount shown above.

Key management personnel were not granted any further advantages or benefits in the reporting periods.

in CHF 1000 2005 2004

Office and administrative services provided by SWX Swiss Exchange to Eurex Zurich Ltd 16 540 15 317

Office and administrative services provided by Eurex Zurich Ltd to SWX Swiss Exchange 52 715 55 290

Eurex derivatives trading 131 251 152 985

Office and administrative services provided by SWX Swiss Exchange to STOXX Ltd 4 331 3 596

in CHF 1000 2005 2004

Compensation 5 839 6 179

Post-employment benefits 271 270

Total 6 110 6 449



7.2 Notes to the consolidated income statement7.2.1 Revenue

7.2.2 Personnel expense

The Board of Directors decided to introduce a cost-cutting programme to ensure the lasting profitability of the core business of the SWX Swiss Exchange. Non-recurring personnel expenditure of CHF 4.8 million was set aside at 31 December 2005 to finance the social plan approved by the management.

In 2005, an average of 469 people were on the permanent staff (467 in the previous year). There were 465 full-time posi-tions occupied at 31 December 2005, compared with 467 a year earlier.

in CHF 1000 2005 2004

Revenue – parties with joint control 149 831 113 604

Revenue – associated companies 152 122 171 899

Revenue – third parties 77 541 73 318

Total revenue 379 494 358 821

in CHF 1000 2005 2004

Compensation 78 360 68 985

Social security payments 10 804 9 165

Other personnel costs 4 861 10 630

Total personnel expense 94 025 88 780



7.2.3 Staff pension fund

Composition of pension plan surplus or deficit recorded on the balance sheet:

Net assets at market value include reserves of CHF 3.744 million for the employer’s contributions.

The amount of CHF 14.926 million recognized on the balance sheet comprises assets of CHF 18.897 million and liabilities of CHF 3.971 million, shown under “Capitalized pension fund assets” and “Pension fund liabilities”, respectively.

Breakdown of pension fund costs

Calculation parameters 31.12.2005 31.12.2004

Discount rate 3.0 % 3.5 %

Interest rate for projected pension 3.0 % 3.5 %

Long-term return 4.0 % 4.0 %

Salary trend 1.5 % 1.5 %

Pensions trend 0 % 0 %

Retirement age· Men· Women

65

64

65

63

Termination probabilities Pursuant to BVG 2000

in CHF 1000 2005 2004

Net assets at market value 141 963 116 996

Present value of obligations 113 354 99 197

Surplus or deficit 28 609 17 799

Non-capitalizable part of surplus 5 376 5 922

Amount recognized on balance sheet 14 926 12 426

in CHF 1000 2005 2004

Current expenditure on service years 9 926 9 926

Interest on present value of obligations 3 472 3 004

Expected net return on investment (4 680) (3 946)

Change in non-capitalizable part (546) 1 890

Employee contributions (3 037) (2 913)

Pension fund costs included in “Personnel expense” 5 036 8 050



Actual revenue from budgeted assets

Movements in amount shown on balance sheet

7.2.4 Capital taxes

7.2.5 Other operating expenses

in CHF 1000 2005 2004

Expected net return on investment 4 680 3 946

Actuarial gains or losses 9 656 (638)

Actual revenue 14 336 3 308

in CHF 1000 2005 2004

1 January (12 426) (8 801)

Pension fund costs for the period 5 036 8 050

Employer’s contributions (7 537) (11 675)

31 December (14 927) (12 426)

in CHF 1000 2005 2004

Capital taxes – current year (635) (1 009)

Total capital taxes (635) (1 009)

in CHF 1000 2005 2004

Other operating expenses relating to associated companies (52 715) (55 290)

Other operating expenses relating to third parties (105 761) (104 123)

Total other operating expenses (158 476) (159 413)



7.2.6 Income from associated companies

7.2.7 Net financial income

7.2.8 Net interest income

in CHF 1000 2005 2004

Dividend income from STOXX Ltd 4 800 4 000

Income from equity stake in STOXX Ltd 2 972 (109)

Impact of new arrangement for dividend-right certificates of Eurex Zurich Ltd 0 (3 544)

Income from equity stake in Eurex Zurich Ltd 2 088 (186)

Impairment, Eurex Zurich Ltd 0 (7 130)

Total income from associated companies 9 860 (6 969)

in CHF 1000 2005 2004

Securities earnings 1 014 (1 284)

Foreign currency earnings 517 (1 276)

Refund of foreign value-added tax 1 592 0

Settlement of projects by Deutsche Börse AG 2 797 0

Compensation payment by Deutsche Börse AG for voting pool agreement 1 400 0

Other financial income 1 512 (628)

Total net financial income 8 832 (3 188)

in CHF 1000 2005 2004

Interest income from SWX Swiss Exchange Association 0 116

Interest income from associated companies 0 31

Interest income from parties with joint control 1 422 1 039

Interest income from third parties 3 781 2 518

Total interest income 5 203 3 704

Interest expense for third parties (70) (155)

Total interest expense (70) (155)

TOTAL NET INTEREST INCOME 5 133 3 549



7.2.9 Income taxes

Analysis of tax burden

The weighted overall tax rate is calculated from the profit tax rates applicable to individual Group companies in the various tax territories, taking into account their respective tax situation.

in CHF 1000 2005 2004

Deferred income taxes (1 185) (34)

Total deferred income taxes (1 185) (34)

Income taxes – previous years 239 (1 449)

Income taxes – current year (25 344) (14 406)

Total income taxes (25 105) (15 855)

TOTAL TAX EXPENSE (26 290) (15 889)

in CHF 1000 2005 2004

Profit before tax 115 537 72 100

Weighted overall tax rate 22 % 22 %

Expected tax expense 25 418 15 843New inclusion of deferred tax assets 1 185 34

Tax reductions arising from loss carry-forwards 0 (1 437)

Difference from local tax rates (74) 0

Effective tax expense 26 529 14 440Effective tax expense as % of profit before tax 23 % 20 %



7.3 Notes to the consolidated balance sheet7.3.1 Cash and cash equivalents

7.3.2 Securities

Money market funds: These funds invest mainly in CHF-denominated money market instruments issued by prime borrowers. The average residual term to maturity of the fund portfolio is not more than one year.

Bonds: Assets are invested in bonds denominated in CHF, EUR and GBP. The benchmark indices are SBI-CHF Domestic, maturity range 1 to 7 years, and SBI-CHF Foreign, maturity range 1 to 7 years. The weighting is 50 % for each category. Euro Corporate Bonds and / or Absolute Return Bonds (ARB) may be used up to a maximum of 10 % of the portfolio value to enhance the return. Minimum ratings for borrower quality are A (Standard & Poor’s) or A2 (Moody’s).

Hedge funds: Investments in hedge funds are made only in funds of funds. In order to be protected from manager-specific and investment-specific (strategy) risks, the portfolio must be diversified into individual funds as well as strategies. The amount invested in an individual fund may not exceed 15 % of the fund of funds, while the amount invested in an individual strategy may not exceed 40 %. The decision to invest in a hedge fund or to change the existing exposure rests with the Executive Committee.

The investment in hedge funds is carried on the balance sheet at net asset value, as no market value is available. Net asset value is based on the market values of hedge fund investments. The unrealized gain or loss resulting from this valuation is booked to the income statement. The net asset value is notified by the fund administrator. Because of the uncertainty concerning the valuation of such investments and the fact that not all markets are liquid, net asset value calculated at the time of valuation may diverge substantially from realizable values.

in CHF 1000 31.12.2005 31.12.2004

Money market funds 30 148 30 043

Bonds 143 023 108 385

Hedge funds 54 268 31 711

Other securities 434 79

Total securities with fair value 227 873 170 218

in CHF 1000 31.12.2005 31.12.2004

Bank current accounts – parties with joint control 70 846 69 396

Cash, post office and bank current accounts – third parties 512 72

Total cash, post office and bank current accounts 71 358 69 468

Time deposits – parties with joint control 114 872 86 243

Time deposits – third parties 0 6 842

Total time deposits (less than 90 days) 114 872 93 085

TOTAL CASH AND CASH EQUIVALENTS 186 230 162 553



Other securities: These securities comprise shares in companies which are held with strategic considerations in mind.

Securities held to final maturity: In 2004, the SWX Swiss Exchange granted U.S. Futures Exchange L.L.C, a company of the Eurex Group, a subordinated loan of CHF 2.7 million. This loan was fully written off on the basis of an impairment review.

7.3.3 Short-term receivables

7.3.4 Short-term loans

The SWX Swiss Exchange granted Eurex Frankfurt an interest-free loan of CHF 3.2 million, carried under interest-free short-term loans to associated companies. The loan was repaid in February 2006.

in CHF 1000 31.12.2005 31.12.2004

Trade receivables

· from third parties 11 085 7 677

· from associated companies 3 672 1 688

· from SWX Swiss Exchange Association 3 675 3 107

· from other related parties 15 538 12 702

Total trade receivables 33 970 25 174

Other receivables

· from third parties 2 182 2 506

Total other receivables 2 182 2 506

TOTAL SHORT-TERM RECEIVABLES 36 152 27 680

in CHF 1000 31.12.2005 31.12.2004

Interest-bearing short-term loans

· to SWX Swiss Exchange Association 100 100

Total interest-bearing short-term loans 100 100

Interest-free short-term loans

· to associated companies 4 012 3 341

Total interest-free short-term loans 4 012 3 341

TOTAL SHORT-TERM LOANS 4 112 3 441



7.3.6 Deferred income taxes

Deferred taxes arising from differences in assets between the IFRS consolidated balance sheet and the tax accounts are as follows:

No noteworthy additional tax liabilities are expected as a result of dividend payments by Group companies and associated companies.

Changes in deferred taxes during 2005 and 2004 are as follows:

A tax rate of 25 % was applied for the calculation of deferred income taxes. This is the locally applicable tax rate of the SWX Swiss Exchange. Temporary valuation differences only concern SWX Group companies.

in CHF 1000Deferred tax

assetsDeferred tax

liabilities 31.12.2005 31.12.2004

Valuation difference – internally developed software 0 290

Capitalization of pension fund 993 993 1 421

General bad debt charge (164) (164) (396)

Goodwill – STOXX Ltd 0 0 (240)

Valuation of STOXX Ltd using equity method (1 226) (1 226) (483)

Pension fund liabilities (4 724) (4 724) (4 528)

Total deferred income taxes 993 (6 114) (5 121) (3 936)

in CHF 1000 2005 2004

At 1.1. (3 936) (3 902)

Formation (liquidation) of timing differences (1 185) (685)

Changes in tax rates 0 651

At 31.12. (5 121) (3 936)

7.3.5 Prepaid expenses and accrued income

in CHF 1000 31.12.2005 31.12.2004

Exchange fees and other revenue 2 330 2 122

Accrued interest on securities 1 239 1 188

Other 0 1 557

Total prepaid expenses and accrued income 3 569 4 867



7.3.7 Tangible fixed assets

in CHF 1000 HardwareLeasehold

improvements Other 2005 2004

Acquisition costs at 1.1. 125 571 17 412 19 042 162 025 153 957

Additions 8 459 1 964 454 10 876 8 068

Acquisition costs at 31.12. 134 030 19 376 19 496 172 901 162 025

Cumulative depreciation at 1.1. (113 350) (14 532) (18 684) (146 566) (129 439)

Additions (10 819) (2 949) (774) (14 541) (17 127)

Cumulative depreciation at 31.12. (124 169) (17 481) (19 458) (161 107) (146 566)

NET BOOK VALUE AT 1.1. 12 221 2 880 358 15 459 24 518

NET BOOK VALUE AT 31.12. 9 861 1 895 38 11 794 15 459

Fire insurance values 31.12.2005 31.12.2004

Hardware 92 000 92 000

Other tangible fixed assets 7 300 7 300



7.3.8 Intangible assets

Software licences have been capitalized since 1996. Externally developed software consists of extended functionalities designed by third parties for the Eurex system. The figure for internally developed software refers to development costs for extending the SWX platform, which have been capitalized since the 2001 financial year.

7.3.9 Associated companies

See note 7.2.6 for more information on developments at subsidiaries.

in CHF 1000 GoodwillStandardsoftware

Externally developed

software

Internally developed

software 31.12.2005 31.12.2004

Acquisition costs at 1.1. 39 327 14 487 43 496 23 530 120 840 114 670

Additions 3 606 6 935 8 891 11 189 30 621 6 617

Disposals (0) (0) (0) (0) (0) (447)

Acquisition costs at 31.12. 42 933 21 422 52 387 34 719 151 461 120 840

Cumulative amortization at 1.1. (38 367) (12 339) (35 708) (10 876) (97 290) (83 506)

Additions (0) (3 355) (10 035) (6 715) (20 105) (12 720)

Special amortization (0) (0) (0) (0) (0) (1 064)

Cumulative amortization at 31.12. (38 367) (15 694) (45 743) (17 591) (117 395) (97 290)

NET BOOK VALUE AT 1.1. 960 2 148 7 788 12 654 23 550 31 164

NET BOOK VALUE AT 31.12. 4 566 5 728 6 644 17 128 34 066 23 550

in CHF 1000 31.12.2005 31.12.2004

Eurex Zurich Ltd, Zurich 13 163 3 501

STOXX Ltd, Zurich 8 257 5 285

Total associated companies 21 420 8 786



7.3.10 Short-term payables

7.3.11 Accrued expenses and deferred income

Pursuant to the ordinance of 2 December 1996 (as amended on 21 October 2003) concerning fees of the Swiss Federal Banking Commission, part of the Commission’s costs are covered by a turnover fee levied by the SWX Swiss Exchange on securities trading. The estimated amount payable to the Commission for the 2005 financial year is CHF 9.0 million.

7.3.12 Tax liabilities

in CHF 1000 31.12.2005 31.12.2004

Trade payables

· to third parties 13 658 12 959

· to associated companies 7 890 747

Total trade payables 21 548 13 706

Other short-term payables

· to third parties 5 970 11 678

· to related parties 1 073 0

Total other short-term payables 7 043 11 678

TOTAL SHORT-TERM PAYABLES 28 591 25 384

in CHF 1000 31.12.2005 31.12.2004

Employee benefits 9 839 8 811

Swiss Federal Banking Commission (SFBC) 9 000 9 900

Other accruals and deferrals 12 386 4 526

Total accrued expenses and deferred income 31 225 23 237

in CHF 1000 31.12.2005 31.12.2004

Tax liabilities – previous years 7 185 6 228

Tax liabilities – current year 13 558 9 626

Total tax liabilities 20 743 15 854



7.3.13 Long-term provisions

Repair work on buildings: Under the existing rental contracts for the premises at Selnaustrasse 30 in Zurich and Canary Wharf in London, alterations made to these buildings by the tenant must be removed and the buildings restored to their original state at the tenant’s expense upon termination of the rental agreement. Appropriate provisions are therefore issued for this purpose over the remaining term of the contracts, based on estimates prepared by external architects.

Other provisions: total provisions of CHF 5 million were set aside to cover any legal obligations which may arise from service agreements, and in connection with the social plan approved by the Board of Directors and notified to employees in 2005.

in CHF 1000Repair work on buildings Other 31.12.2005 31. 12. 2004

Book value at 1.1. 3 055 111 3 166 3 865

Additions 199 4 938 5 137 309

Reclassification 0 0 0 (1 007)

Foreign currency earnings (2) 0 (2) 0

BOOK VALUE AT 31.12. 3 252 5 049 8 301 3 166



7.4 Other information7.4.1 Segment data

in CHF 1000Cash

trading

Eurex derivatives

tradingData sales Admission

CorporateServices

Total Group 2005

Total Group 2004

Revenue 175 176 146 574 31 492 19 653 6 599 379 494 358 821Operating expenses (126 488) (62 017) (10 480) (5 466) (48 685) (253 136) (249 202)

Income from associated companies 0 2 088 7 772 0 0 9 860 (6 969)

Financial income 1 723 0 161 0 6 948 8 832 (3 188)

EBITDA 50 411 86 645 28 945 14 187 (35 138) 145 050 99 462

Depreciation and amortization of tangible and intangible assets (17 533) (10 448) (1 641) (85) (4 940) (34 646) (30 911)

EBIT 32 878 76 198 27 304 14 102 (40 078) 110 404 68 551

Interest income 968 0 9 0 4 156 5 133 3 549

Income taxes (1 641) 1 546 (743) 0 (25 452) (26 290) (15 889)

Profit (loss) for the year 32 205 77 744 26 570 14 102 (61 374) 89 247 56 211

Intangible assets 25 461 6 844 104 0 1 657 34 066 23 550

Tangible fixed assets 5 401 837 1 389 0 4 167 11 794 15 459

Holdings in associated companies 0 13 163 0 0 8 257 21 420 8 786

Other assets 63 257 8 539 13 413 539 392 078 477 826 388 580

Total assets 94 120 29 383 14 907 539 406 158 545 106 436 375

Liabilities (31 182) (8 881) (1 183) (134) (57 565) (98 945) (78 972)

Investments 24 447 17 776 1 497 0 6 962 50 682 14 238

Total expenses with no impact on cash flow (13 623) (18 691) (3 284) (6 114) 19 546 (22 166) (17 547)



7.4.2 Major contractsThe following long-term contracts were in effect at 31 December 2005: · Cooperation agreement with Deutsche Börse concerning Eurex Zurich Ltd (expiry 2014) · Rental contracts entered into by the SWX Group: · Canton of Zurich, Selnau stock exchange building (expiry 2012) · Canary Wharf Management Ltd, Canary Wharf, London (expiry 2006) · Société Privée de Gérance, Geneva (expiry 2012) · Telekurs Services AG, Zurich (expiry 2007)

Payments due under these rental contracts are as follows:

in CHF 1000 2005 2004

Within one year 8 236 4 833

In two to five years 18 737 15 114

In more than five years 9 815 13 708

Total future rental payments 36 788 33 655

7.4.3 Contingent liabilitiesThe SWX Swiss Exchange has committed itself in a comfort letter to providing Eurex Clearing AG, Frankfurt, with 20 % of the financial resources it needs to fulfil its obligations as a clearing house. The terms of this undertaking were revised with effect from 1 January 2005. The commitment is now 15 % and is limited to a maximum amount of EUR 105 mil-lion. This new arrangement replaces the comfort letter of 8 November 2000. The commitment for events prior to 1 January 2005 is 20 %.

In compliance with regulatory requirements of the Financial Services Authority (FSA), the SWX Swiss Exchange has com-mitted itself to providing virt-x Ltd with sufficient financial resources at any time.

7.4.4 Post-balance-sheet eventsOn 3 March 2006, the Board of Directors recommended approval of the consolidated annual financial statements of the SWX Group.

No events occurred after the balance sheet date which would have a material impact on the consolidated financial state-ments for the year ended 31 December 2005.





8. Report of the Group auditors

Zurich, 15 February 2006

As Group auditors, we have audited the consolidated financial statements (balance sheet, income statement, statement of changes in equity, cash flow statement and notes, see pages 60 to 94) of SWX Group, Zurich, for the year ended 31 December 2005.

These consolidated financial statements are the responsibility of the Board of Directors. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We confirm that we meet the legal requirements concerning professional qualification and independence.

Our audit was conducted in accordance with Swiss Auditing Standards, which require that an audit be planned and performed to obtain reasonable assurance about whether the consolidated financial statements are free from material mis-statement. We have examined on a test basis evidence supporting the amounts and disclosures in the consolidated financial statements. We have also assessed the accounting principles used, significant estimates made and the overall consolidated financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements give a true and fair view of the financial position, the results of operations and the cash flows in accordance with the International Financial Reporting Standards (IFRS) and comply with Swiss law.

We recommend that the consolidated financial statements submitted to you be approved.

Ernst & Young AG

Thomas Schneider Iqbal KhanSwiss Certified Accountant Swiss Certified Accountant(in charge of the audit)





9. Company financial statements of the SWX Group

9.1 Income statement

in CHF 1000 2005 2004

Other operating expenses (0) (170)

Operating income (0) (170)

Interest income 3 666 2 523

Securities earnings 1 046 1 446

Dividends 44 800 44 000

Foreign currency earnings (112) (0)

Other financial expense (227) (289)

Net financial income 49 173 47 680

Profit for the year before taxes 49 173 47 510

Taxes (655) (556)

PROFIT FOR THE YEAR 48 518 46 954



9.2 Balance sheet

in CHF 1000 31.12.2005 31.12.2004

ASSETS

Credit balances with banks 575 44

Time deposits 23 408 32 828

Total cash and cash equivalents 23 983 32 872

Hedge funds 54 268 31 711

Bonds 143 023 108 385

Total securities 197 291 140 096

Total cash and cash equivalents and securities 221 274 172 968

Receivables

· from third parties 980 530

Total receivables 980 530

Prepaid expenses and accrued income 1 239 1 188

Total current assets 223 493 174 686

Investments in subsidiaries 263 331 263 331

Total non-current assets 263 331 263 331

TOTAL ASSETS 486 824 438 017



in CHF 1000 31.12.2005 31.12.2004

LIABILITIES AND EQUITY

Provisions 850 561

Total long-term liabilities 850 561

Total liabilities 850 561

Share capital 10 000 10 000

Legal reserve 249 077 249 077

Profit brought forward 178 379 131 425

Profit for the year at 31.12. 48 518 46 954

Total equity 485 974 437 456

TOTAL LIABILITIES AND EQUITY 486 824 438 017

9.2 Balance sheet



9.3 Notes to the annual financial statements9.3.1 Investments in subsidiaries

9.3.2 Guarantees and guarantee obligations in favour of third parties There are no guarantees, guarantee obligations or assets pledged in favour of third parties.

9.3.3 Equity

The SWX Group’s share capital amounts to CHF 10 000 000, is fully paid in and is divided into 10 000 registered shares with a nominal value of CHF 1000 each.

All the shares of the SWX Group are owned by the SWX Swiss Exchange Association

9.3.4 Proposal for appropriation of profitThe Board of Directors recommends that the profit for the year of CHF 48 518 000 should be carried forward.

in CHF 1000 31.12.2005 31.12.2004

SWX Swiss Exchange, Zurich 258 978 258 978

STOXX Ltd, Zurich 3 353 3 353

EXFEED Ltd, Zurich 1 000 1 000

Total Investments in Subsidiaries 263 331 263 331

in CHF 1000 31.12.2005 31.12.2004

Share capital 10 000 10 000

Legal reserve 249 077 249 077

Profit brought forward 178 379 131 425


Total equity 485 974 437 456



10. Report of the statutory auditors

Zurich, 15 February 2006

As statutory auditors, we have audited the accounting records and the financial statements (balance sheet, income statement and notes, see pages 98 to 101) of SWX Group, Zurich, for the year ended 31 December 2005.

These financial statements are the responsibility of the Board of Directors. Our responsibility is to express an opinion on these financial statements based on our audit. We confirm that we meet the legal requirements concerning professional qualification and independence.

Our audit was conducted in accordance with Swiss Auditing Standards, which require that an audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement. We have examined on a test basis evidence supporting the amounts and disclosures in the financial statements. We have also assessed the accounting principles used, significant estimates made and the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the accounting records and financial statements and the proposed appropriation of available earnings com-ply with Swiss law and the company’s articles of incorporation.

We recommend that the financial statements submitted to you be approved.

Ernst & Young AG

Thomas Schneider Iqbal KhanSwiss Certified Accountant Swiss Certified Accountant(in charge of the audit)




104

“ Demands on securities exchanges have

changed considerably in recent years.

In the early days of electronic trading,

the main focus was on replacing

the floor system with a platform encom-

passing all market segments. Today,

exchanges must be able to offer a wide

variety of services for very diverse

markets and participants.” Daniel Risold, Deputy Head of Strategic Business Development, Vice President


Annex

Shaping the future

Fully automated trading has not only come to be taken for granted during the past ten years, it has also developed its own

momentum. In numerous market segments, different needs have emerged which were only made possible by electronic

trading and trading strategies in the first place. Market making, arbitrage and algorithmic trading are making new demands

on exchange systems. Regulatory changes, in particular, will pose another challenge for exchanges in the near future.


106 AnnexSWX Group Annual Report 2005

SWX Swiss Exchange Association

The SWX Swiss Exchange Association had 54 member institutions at the end of 2005. The fourth general meeting was held on 22 April 2005. It approved the annual report and financial statements for 2004, reappointed the existing Board members and elected three new members – Andreas Amschwand, UBS, David J. Blumer, Credit Suisse, and Eduardo Leemann, Asso-ciation of Foreign Banks in Switzerland. The appointment of Ernst & Young as auditors was also extended. The Board of Directors met once in the year under review and represented the Association at the general assemblies of the SWX Group and the SWX Swiss Exchange.

SWX Group

The SWX Group held its ordinary general assembly on 22 April 2005. The Group’s Board of Directors is composed of the same members as the Boards of the SWX Swiss Exchange Association and the SWX Swiss Exchange joint-stock company.

Presidium

Surveillance & EnforcementW. M. Ochsner

International & ResearchR. T. Meier

SecretaryR. A. Müller

SWX Group organization chart (status 1 January 2006)

SWX Group ExecutiveCommittee

J. Spillmann HeadH. Henckel CEO SWX

Admission Board

P. E. Merian Chairman

General Assembly

Disciplinary Commission

J. Spring Chairman

Committees

Committee of the Board of Directors

Compensation Committee

Audit Committee

Advisory Commissions

Accountancy Panel

Commission of Experts on Disclosure of Shareoldings

Cash Market Advisory Board

London Member Group

IT Commission

Index Commission

Bond Index Commission

SWX Investment Fund Commission

Board of Directors

J. de Saussure Chairman a.i.

Appeals Board

D. Bosshart Chairman


107AnnexSWX Group Annual Report 2005

Members of the SWX Swiss Exchange Board of Directors (status 1 January 2006)

Chairman a.i.: Jacques de Saussure*,*** Managing Partner, Pictet & Cie, Banquiers, Geneva

Andreas Amschwand Head of UBS Investment Bank Switzerland and Member of the UBS Group Managing Board, UBS AG, Zurich

Walter Berchtold*,*** Chief Executive Officer Private Banking, Credit Suisse, Zurich

David J. Blumer Head of Trading & Sales, Credit Suisse, Zurich

Raymund Breu*** CFO and Member of the Executive Committee, Novartis AG, Basel

Jean-Luc de Buman Senior Vice President, SGS SA, Geneva

Bernard Droux Managing Partner, Lombard Odier Darier Hentsch & Cie, Geneva

Hans Fischer Member of the Executive Board, Zürcher Kantonalbank, Zurich

G. Andreas Guth*,** Chairman of the Board of Directors, Dreyfus Sons & Co. Limited, Banquiers, Basel

Andreas Häberli* Head of Equities Switzerland and Member of the UBS Investment Bank Board, Zurich

Reto Himmel** CTO and Member of the Group Executive Board, Swiss Life, Zurich

Eduardo Leemann CEO (from May 2006 Chairman of the Board), AIG Privat Bank AG, Zurich

Peter R. Rahn** Partner, Rahn & Bodmer, Banquiers, Zurich

Richard A. Müller, Corporate Secretary

* Member of the Committee of the Board of Directors of the SWX Swiss Exchange** Member of the Audit Committee*** Member of the Compensation Committee

SWX Swiss Exchange Board of Directors

The Board of Directors met six times and held one ballot by e-mail in the year under review. The Committee of the Board met five times and conducted two votes by circular. The Audit and Compensation Committees held their own separate meetings. The Board of Directors discussed the structure of the Swiss financial marketplace and the business trend at Eurex US. After deliberating on the strategy of the SWX Swiss Exchange, it decided to introduce economy measures with the aim of cutting costs by CHF 20 million. It approved the decision to acquire control of the Bremen Stock Exchange and took note of the successful launch of Quotematch, the new strategic exchange system. The Board also adopted a number of amendments to the General Conditions and conducted elections pursuant to the Articles of Association. Following the resignation of Reto Francioni as Chairman in October 2005, the question of appointing a successor for him figured high on the agenda.

Stephan Zimmermann left the Board of Directors during the year. Andreas Amschwand, David J. Blumer and Eduardo Leemann were elected as new members.



Members of the virt-x Board of Directors (status 1 January 2006)

Peter Stevens* Chairman

Jim Gollan CEO, virt-x, London

Walter Berchtold Chief Executive Officer Private Banking, Credit Suisse, Zurich

G. Andreas Guth Chairman of the Board of Directors, Dreyfus Sons & Co. Limited, Banquiers, Basel

Andreas Häberli Head of Equities Switzerland and Member of the UBS Investment Bank Board, Zurich

Jacques de Saussure Managing Partner, Pictet & Cie, Banquiers, Geneva

Jürg Spillmann Head of the SWX Group Executive Committee, Zurich

Benn Steil* Council on Foreign Relations, New York

* independent director

virt-x Board of Directors

The virt-x Board met five times and the Subcommittee of the Board four times in 2005. Matters under discussion during the year included the segmentation of virt-x’s markets to coincide with the implementation of the EU Prospectus Directive and the EU Market Abuse Directive (MAD). Significant commercial initiatives considered included options to extend the virt-x trading service to new instruments, a detailed review of the implications of the rapid growth in automated trading and connectivity as well as virt-x’s response to the opportunities presented by the EU-Markets in Financial Instruments Directive (MiFID).

Stephan Zimmermann and Reto Francioni left the Board during the year, whereas the former was replaced by Andreas Häberli. Peter Keller resigned as CEO of virt-x and left the Board; he was replaced in both capacities by Jim Gollan, who was previously Deputy CEO of virt-x.

The Audit Committee met twice and the Remuneration Committee once in 2005.



Market Development

H. Henckel GBM

SWX Swiss Exchange and virt-x organization chart (status 1 January 2006)

virt-x

J. Gollan CEO

Management Services

Human ResourcesCorporate CommunicationsCorporate Planning & ControllingLegal Services

Information Technology

C. Landis GBI

Information Products

W. Bürki GBP

Admission

D. Keist GBZ

Market Operations

L. Hodgkinson GBO

Management Committee

J. Spillmann, HeadH. Henckel W. BürkiJ. Gollan C. LandisL. Hodgkinson D. Keist

SWX Swiss Exchange

H. Henckel CEO



Members of the Eurex Board of Directors (status 1 January 2006)

Chairman: Markus Granziol

Hugo Bänziger Chief Risk Officer, Deutsche Bank AG, London

Walter Berchtold Chief Executive Officer Private Banking, Credit Suisse, Zurich

Heinrich Henckel CEO, SWX Swiss Exchange, Zurich

Reto Francioni CEO, Deutsche Börse AG, Frankfurt

Mathias Hlubek Member of the Executive Committee, Deutsche Börse AG, Frankfurt

Michael Kuhn Member of the Executive Committee, Deutsche Börse AG, Frankfurt

Roger Müller Head of Legal Affairs and Membership, Deutsche Börse AG, Frankfurt

Martin Reck Managing Director, Group Functionality, Deutsche Börse AG, Frankfurt

Jürgen Karl Röthig Managing Director, Trading / Clearing / Info Operations, Deutsche Börse AG, Frankfurt

Jacques de Saussure Managing Partner, Pictet & Cie, Banquiers, Geneva

STOXX Board of Directors

Members of the STOXX Board of Directors (status 1 January 2006)

Chairman: Christian P. Meister Attorney at law

Supervisory Board

Chairman: Werner Bürki Member of the Management Board, SWX Swiss Exchange, Zurich

Mike Petronella President of Dow Jones Indexes / Ventures, Princeton (USA)

Holger Wohlenberg Managing Director, Information Systems, Deutsche Börse AG, Frankfurt

Eurex Board of Directors



Members of the Admission Board (status 1 January 2006)

Chairman: Peter E. Merian* CEO, Bank Sarasin & Co. Ltd., Basel

Vice Chairman: Raymund Breu* CFO and Member of the Executive Committee, Novartis AG, Basel

Bruno Allmendinger* Chief Financial Officer, Member of the Executive Committee, Sulzer Ltd, Winterthur

Raymond J. Bär Chairman of the Board of Directors, Julius Bär Holding Ltd, Zurich

Rémy Best Managing Partner, Pictet & Cie, Banquiers, Geneva

Christian A. Camenzind (from 24.6.05) CEO, Bank Sal. Oppenheim jr. & Cie. (Switzerland) Ltd, Zurich

Reto A. Cavelti (until 24.6.05) Managing Director and Senior Executive Officer for Switzerland,Citigroup Global Markets Ltd, Zurich

Hans Fischer Member of the Executive Board, Zürcher Kantonalbank, Zurich

Reto Francioni (until 31.10.05) Chairman of the Board of Directors, SWX Swiss Exchange, Zurich

Felix Horber Legal Counsel, Head of Policy & Corporate Governance, UBS AG, Zurich

Markus Dietrich Niederhauser General Counsel, Bobst Group SA, Lausanne

Bruno Pfister* (from 31.3.05) CEO International and Member of the Corporate Executive Board, Swiss Life, Zurich

Wolfgang H. Reichenberger* (until 31.12.05)

Executive Vice President and CFO, Nestlé S.A., Vevey

Urs Rohner* Member of the Executive Board and General Counsel Credit Suisse Group and Credit Suisse, Chief Operating Officer Credit Suisse, Zurich

Felix M. Stählin* (until 31.3.05) until 31.12.04 Chief Executive Officer, Swiss National Insurance Company, Basel

Othmar T. Vock Member of the Board of Directors of Swisscom AG

Rolf Watter Attorney at law, Partner, Member of the Managing Board, Bär & Karrer, Zurich

Hermann Wirz (from 1.1.06) Senior Vice President, Head of Group Accounting & Reporting, Nestlé S.A., Vevey

* Member of the Executive Committee of the Admission Board

Admission Board

The Admission Board of the SWX Swiss Exchange consists of 15 members, six of whom are appointed by economiesuisse (the Swiss Business Federation) and nine by the Board of Directors of the SWX Swiss Exchange. The Board held three meet-ings in 2005. As the SWX body entrusted with drawing up the rules governing the listing and issuance of securities, it lays down regulations and directives and elects the members of its Executive Committee. This committee is responsible, inter alia, for the application of regulatory provisions pertaining to the admission of new issuers and products, and for monitoring compliance with issuers’ obligations. It also decides on sanctions to be imposed on issuers and audit companies. Amend-ments to rules and regulations and changes in the Board’s practice are published in communiqués and circulars. The Executive Committee held eight meetings in 2005.

Bruno Pfister succeeded Felix M. Stählin in the reporting period, while Christian A. Camenzind replaced Reto A. Cavelti. Hermann Witz was appointed in place of Wolfgang H. Reichenberger, who stepped down at the end of 2005. Reto Francioni left the Admission Board after resigning as Chairman of the Board of Directors of the SWX Swiss Exchange.



Members of the Accountancy Panel (status 1 January 2006)

Chairman: Conrad Meyer Director of the Institute for Accounting and Controlling, University of Zurich

Thomas Braun Partner, Braun, von Wyss & Müller Ltd, Zurich

Malcolm Cheetham Chief Accounting Officer, Novartis International Ltd, Basel

Niklaus Meier Group Controller, Ciba Specialty Chemicals Inc., Basel

Urs Moser Director, Ernst & Young Ltd, Zurich

Jörg Riboni CFO, Sarna Polymer Holding Inc., Sarnen

Daniel Suter Partner, PricewaterhouseCoopers Ltd, Basel

Accountancy Panel

The Accountancy Panel met twice in 2005. The main focus of its work was on assessing violations of accounting standards in annual reports for 2004 and recommending appropriate sanctions against auditors and various issuers. The Panel also drafted a communiqué dealing with the inspection of 2005 annual reports, and updated Circular No. 6 on the IFRS (Inter-national Financial Reporting Standards). In its capacity as an advisory body, the Accountancy Panel strives to enforce relevant accounting standards and continuously improve the transparency of financial reporting in Switzerland.



Members of the Commission of Experts on Disclosure of Shareholdings (status 1 January 2006)

Chairman: Daniel Keist Member of the Management Board, SWX Swiss Exchange, Zurich

Vice Chairman: Michael Gruber Head of Disclosure Office, SWX Swiss Exchange, Zurich

Michèle Burger General Counsel Corporate, Nestlé S.A., Vevey

Andreas Cané Senior Vice President, Pictet & Cie, Banquiers, Geneva

Karl Hofstetter Executive Vice President (General Counsel), Schindler Holding Corp., Hergiswil

Lorenzo Kyburz Head Legal and Compliance Investment Management, Swiss Life, Zurich

Christian Lubicz Senior Vice President, Bank Sarasin & Co. Ltd, Zurich

Adriano Margiotta* Legal Adviser, Takeover Board, Zurich

Franz Stirnimann* Swiss Federal Banking Commission, Bern

Rolf Watter Attorney at law, Partner, Member of the Managing Board, Bär & Karrer, Zurich

* permanent observer

Commission of Experts on Disclosure of Shareholdings

The Commission of Experts on Disclosure of Shareholdings met on 1 December 2005. The main focus of discussion was on disclosure issues in the area of securities lending. The Commission is expected to publish a communiqué on this subject in 2006.

Urs Bigger, formerly of Credit Suisse Group, announced his resignation from the Commission in November. The Committee of the Board of Directors of the SWX Swiss Exchange still has to appoint a successor for him.



Members of the Appeals Board (status 1 January 2006)

Chairman: Dieter Bosshart Former Senior Judge at the Higher Court of Canton Zurich

Sylvain Matthey Manager, Pictet & Cie, Banquiers, Geneva

Rolf H. Weber Professor for Private, Economic and European Law at the University of Zurich

Alternate Members of the Appeals Board

Deputy Chairman: Jürg Spring President of the Administrative Court of Canton Thurgau, Weinfelden

Jean Berthoud Managing Partner, CEO, Banque Bonhôte & Cie SA, Neuchâtel

Heinrich Andreas Müller Senior Judge at the Higher Court of Canton Zurich

Isabelle Romy Professor at the Faculty of Law of the University of Fribourg, Lawyer in Zurich

Appeals Board

The Appeals Board dealt with one case in 2005 (none in the previous year). An issuer contested the publication of a rule. This case was still awaiting judgement at the end of the year, as an appeal against the decision of the Appeals Board was lodged with the Arbitral Tribunal.



Members of the Disciplinary Commission (status 1 January 2006)

Chairman: Jürg Spring President of the Administrative Court of Canton Thurgau, Weinfelden

Jean Berthoud Managing Partner, CEO, Banque Bonhôte & Cie SA, Neuchâtel

Isabelle Romy Professor at the Faculty of Law of the University of Fribourg, Lawyer in Zurich

Deputy Members of the Disciplinary Commission

Deputy Chairman: Dieter Bosshart Former Senior Judge at the Higher Court of Canton Zurich

Sylvain Matthey Manager, Pictet & Cie, Banquiers, Geneva

Rolf H. Weber Professor for Private, Economic and European Law at the University of Zurich

Disciplinary Commission

The Disciplinary Commission imposed five sanctions on issuers in 2005. Four of them took the form of reprimands for breaching the ad hoc publicity rules, violating accounting standards, failing to provide equal treatment for investors and disregarding the obligation to prepare interim reports. The Commission published details of its decisions in these cases. Another issuer received a reprimand for a minor infringement of corporate governance information requirements. Two participants were cautioned for not complying with the obligation to register traders. The Commission did not rule on a complaint from an audit firm which had been fined by the Executive Committee of the Admission Board, as the plaintiff was not contesting the decision itself but only wanted some of the grounds for it removed.

Furthermore, as a matter of principle the Commission has stipulated that the public shall always be informed of the outcome of a case if an announcement that an investigation is under way has already been published. Decisions to impose sanctions will therefore be published even if publication is not ordered as an additional sanction in minor cases.

Chairmen of the Arbitral Tribunal (status 1 January 2006)

Chairman:Claude Rouille

Former President of the Swiss Federal Supreme Court, Lawyer, Professor at the Faculty of Law of the University of Neuchâtel

Deputy Chairman:Hans Peter Walter

Former President of the Swiss Federal Supreme Court, Professor at the Faculty of Law of the University of Bern

Arbitral Tribunal

A case concerning a decision by the Appeals Board was brought before the Arbitral Tribunal in the year under review. It will be dealt with in 2006.



Surveillance & Enforcement

The Surveillance & Enforcement Office (SVE) is the independent supervisory body of the SWX Swiss Exchange. Within the meaning of Art. 6 of the Stock Exchange Act, it supervises the securities market to ensure compliance with SWX rules and regulations and the provisions of the law.

Basically, trading activities on the SWX Swiss Exchange were conducted in accordance with the rule book in 2005. It is encouraging to note that no serious incidents came to light in the reporting period. Investigations were carried out promptly and most of them had been completed by year-end. If SVE became aware of possible irregularities or circumstances that needed clarification, it contacted the market participants concerned and instructed them to furnish an explanation or rem-edy the situation. In some cases, where satisfactory answers were still not forthcoming after initial inquiries, SVE had to institute formal proceedings. It launched 16 such investigations, eight of which were forwarded to the Swiss Federal Banking Commission and / or the criminal prosecution authorities.

SVE imposed sanctions itself or requested the Disciplinary Commission to do so in connection with six investigations. For the first time ever, it was necessary to investigate and judge the organizational negligence of SWX participants after sanctions proceedings against traders employed by them had been concluded.

Three investigations were opened on the basis of auditors’ reports, which participants are obliged to submit every year in accordance with the General Conditions of the SWX Swiss Exchange. These reports are examined by an independent audit firm to monitor compliance with relevant trading rules and regulations. In one case, the findings of the audit firm and the SVE investigation based thereon led to a participant being cautioned for improper use of trader identifications.(http: / / www.swx.com / download / trading / participants / sanctions / decision_dc_13_07_05_en.pdf)

In cooperation with the virt-x surveillance body, SVE looked into a number of issues concerning both exchanges last year. None of these investigations brought to light matters requiring the attention of the regulatory authorities. As regards market supervision at Eurex, the regular exchange of information with the supervisory body of Eurex Deutschland was maintained during the reporting period.

Members of the team also gave talks on SVE activities at external courses and seminars, continuing the practice adopted in recent years.



Members of the Cash Market Advisory Board (status 1 January 2006)

Chairman: Heinrich Henckel CEO, SWX Swiss Exchange, Zurich

Vice Chairman: Marc Zahn Vice President, SWX Swiss Exchange, Zurich

Serge Déteindre Managing Director, UBS Investment Bank, Zurich

Markus Hofmann Member of the Senior Management, Zürcher Kantonalbank, Zurich

Hans Keist Senior Vice President, Bank Sarasin & Co. Ltd, Zurich

Claude Magnin Managing Director, Lombard Odier Darier Hentsch & Cie, Geneva

Alfred Ritter Member of the Senior Management, Basler Kantonalbank, Basel

Jakob Staenz Director, Credit Suisse, Zurich

Marco Strimer Member of the Executive Committee, SIS SegaInterSettle AG, Zurich, CEO x-clear, Zurich

Claudio Studer Senior Vice President, Bank Julius Bär & Co. AG, Zurich

Cash Market Advisory Board

In its capacity as a consultative body, the Cash Market Advisory Board provides the SWX Swiss Exchange with expert advice on relevant issues for securities trading. It is currently composed of seven representatives of SWX participant institutions in Zurich, Geneva and Basel, and one representative of SIS SegaInterSettle AG. The Board also includes SWX executives. The Quotematch programme (pricing, rule book amendments, etc.) topped the agenda at most of the nine meetings held by the Board in 2005. Other topics dealt with were EM8 release planning, new publication requirements for off-exchange trades in SWX-listed bonds, SFBC Circular 04 / 03 (para. 50, VWAP and para. 61, direct orders from customers of a third-party bank to Exchange participants), virt-x, status of the Sponsored Segment, strategic options in derivatives trading (Bremen Stock Exchange), index licensing fee model, 2006 trading calendar and central counterparty (CCP) for the Swiss market.



Members of the London Member Group (status 1 January 2006)

Chairman: Jim Gollan CEO, virt-x, London

Mike Ackers Head of Relationship Management for Equity Clients and Markets, ABN Amro Bank, N.V., London

Robert Barnes Managing Director, Market Structures, UBS Investment Bank, London

Niki Beattie Head of Market Structure, Merrill Lynch International, London

Ian Cohen Global Equities Business Strategy Officer and European Head of Market Structures, HSBC Bank plc, London

David Crookston COO of European Cash Equities, JP Morgan Securities Ltd, London

Antony Di Lorenzo Director / Head of Fixed Income, Winterflood Securities Limited, London

Adrian Farnham Executive Director, Market Infrastructure Group, Morgan Stanley & Co. International Ltd, London

Andrew Farran COO of European Equities Development, Credit Suisse Securities (Europe) Ltd, London

Brad Hunt Managing Director, Goldman Sachs International, London

Richard J Kyle Director, European Equities Development, Citigroup Global Markets Limited, London

Hirander Misra European Head of Exchange Linkages Group, Instinet Europe Ltd, London

Paul Reeves Business Manager, European Cash Equities, Deutsche Bank AG, London

Andrew Wells European Executive Service Business Manager, Lehman Brothers International (Europe), London

Ian Wright Business Manager, Cash Equities, Dresdner Kleinwort Wasserstein Securities Ltd, London

London Member Group

The London Member Group (LMG) was reformed in late 2005. It comprises 14 representatives of the UK-based membership of SWX and virt-x. LMG provides a forum to enable virt-x to capture the representative views of those members and for the same members to offer guidance on operational, strategic development and market issues. Meetings are held on a quarterly basis at virt-x’s offices in London. It complements the Cash Market Advisory Board of SWX and the IT Commission, which represent the views of Swiss-based participants.



Members of the IT Commission (status 1 January 2006)

Chairman: Jürg Spillmann Head of the SWX Group Executive Committee, Zurich

Vice Chairman: Chris Landis Member of the Management Board, SWX Swiss Exchange, Zurich

Josef Arnold Senior Vice President, SWX Swiss Exchange, Zurich

Max Dähler Member of the Senior Management, SIS Systems AG, Zurich

Peter Ife (from 01.02.2005) Director, Credit Suisse, Zurich

Hansruedi Kern Executive Vice President, Lombard Odier Darier Hentsch & Cie, Geneva

Roger Larsson Vice President, Bank Vontobel AG, Zurich

Markus Moser (from 01.02.2005) Member of Management, Basler Kantonalbank, Basel

Marcel Nussbaum (until 31.01.2005) Director, Credit Suisse, Zurich

Martin Solenthaler (†, until 31.07.2005) Vice President, UBS AG, Zurich

Stefan Steiner (from 01.08.2005) Executive Director, UBS AG, Zurich

Daniel Treichler Member of Management, Zürcher Kantonalbank, Zurich

IT Commission

The SWX Swiss Exchange IT Commission is a technical panel composed of the IT managers of participating banks and representatives of the SWX Information Technology Division. Via this panel, SWX keeps participating banks informed about the status of software release projects and consults it on matters of IT planning and strategy. The Commission, which normally meets every two months, held four meetings in 2005. The other two meetings scheduled were cancelled.

The status reports on the Quotematch programme were the focal point of discussion last year. The implementation of Quotematch in November 2005 necessitated considerable expenditure by participants on adjustments to their systems and routines. At the April meeting, Commission members were therefore informed of the changes in SWX and virt-x publication rules to be introduced during the year. They were also presented with alternative scenarios on how to structure the SWX service offering and link-ups with participants and traders in the future. This is a central issue on the information technology front at SWX.

Eurex Zürich Ltd gave a presentation at the August meeting on Eurex SecLend, an application for electronic collateral trading. This new market made its debut on 1 September 2005.



Members of the Index Commission (status 1 January 2006)


Vice Chairman: Markus Götschi Index Analyst, SWX Swiss Exchange, Zurich

Daniel Brupbacher Member of the Executive Board, Credit Suisse, Zurich

Marco Curti Member of the Senior Management, Zürcher Kantonalbank, Zurich

Thomas Haefliger Director, Banque Pictet & Cie, Banquiers, Zurich

Ernst Mäder Chief Financial Officer, Suva, Luzern

Ulrich Niederer Managing Director, Chairman UBS Global Asset Management Switzerland, UBS AG, Zurich

Markus Pfister First Vice President, Bank Vontobel AG, Zurich

Peter Wehrmann Vice President, Credit Suisse, Zurich

Index Commission

The Index Commission held three consultative meetings in 2005, at which the main topic was the changeover to the Industry Classification Benchmark (ICB) for the SPI sector indices. Unlike STOXX, which had already adopted the Dow Jones Classi-fication Standard in autumn 2004, the technical modifications for the SPI could only be made in the course of 2005.

The theme of capped indexes was also a major point of discussion last year. The extension of the SWX range of index products is aimed at making them more attractive for foreign investors, since the weightings take EU and US risk diversi fication rules into account. These consultations will continue until end-March 2006, due to the special market conditions in Switzer-land and the inclusion of more market participants and issuers.



Members of the Bond Index Commission (status 1 January 2006)

Vice Chairman: Werner Bürki Member of the Management Board, SWX Swiss Exchange, Zurich

Vice Chairman: Patrick Weibel Analyst CIIA, SWX Swiss Exchange, Zurich

Taner Alicehic Vice President, Banque Cantonale Vaudoise, Lausanne

Andreas Dänzer Certified Financial Analyst and Fund Manager, Federal Pension Fund PUBLICA, Bern

Iwan Deplazes until 31.10.05 Member of the Management, Zürcher Kantonalbank, Zurich; from 01.11.05 Director, Credit Suisse, Zurich

Christian Jochum Executive Director, UBS Global Asset Management, Zurich

Kuno Kennel Executive Director, ABN AMRO Bank NV, Zurich Branch, Zurich

Wolfgang Marty Chairman, Swiss Bond Commission, Zurich

François-Marie Monnet Vice Chairman, MultiPlus Finance SA, Geneva

Sven Rump until 30.06.05 Managing Director, Deutsche Asset Management Schweiz, Zurich; from 01.07.05 CEO, DWS Investments Switzerland, Zurich

Michael Tschudin Partner, INWI GmbH, Zurich

Thomas Trauth Managing Director, Credit Suisse, Zurich

Gregor S. Valko Section Head Treasury, Swiss Federal Finance Administration FFA, Bern

Bond Index Commission

The number of members of this body, which was established in 2004, was increased from 11 to 13 in the year under review. The Commission held two ordinary meetings in 2005, and a further round of consultations was conducted by circular.

Proceedings focused on the bond index matrix structure project initiated in 2004. In close cooperation with three banks, this involves obtaining ratings for domestic borrowers which are not covered by international rating agencies. The aim is to expand the bond index family by adding a rating dimension to the existing sector classification.



Members of the SWX Investment Fund Commission (status 1 January 2006)


Vice Chairman: Lars Habermann Vice President, SWX Swiss Exchange, Zurich

Max Baumann Former CEO, Swiss Funds Association – SFA, Basel

Jürg Brassel Vice President, Lombard Odier Darier Hentsch & Cie, Geneva

Philippe Holzwarth Assistant Vice President, DWS Investments Switzerland, Zurich

Karsten Illy Vice President, UBS Fund Management (Schweiz) AG, Basel

Thomas Schärer Deputy CEO, Credit Suisse Asset Management Funds, Zurich

Gianni Valsecchi CEO, AFM Advanced Fund Management AG, Vaduz (FL)

Thomas von Ballmoos Member of Management, Swisscanto Fondsleitung AG, Bern

SWX Investment Fund Commission

This specialized consultative panel held two ordinary meetings in the year under review, the main subject of debate being the extension of the TIF system to handle data acquisition for the newly defined investment fund statistics compiled by the Swiss National Bank. Other major items on the agenda were the monitoring of fund categories and the definition of data evaluations.



International Organizations

Federation of European Securities Exchanges (FESE)www.fese.org

The reporting year was marked by significant staff changes at FESE. The Federation’s long-standing Secretary General, Paul Arlman, replaced by Judith Hardt. This choice illus-trates the transformation undergone by FESE, whose activi-ties today are increasingly focused on lobbying in Brussels. Given the importance of regulatory developments in the EU for SWX, having a first-hand view of the processes involved and taking part in the discussions is extremely useful.

As the 40 or so ordinances drafted under the Financial Ser-vices Action Plan (FSAP) were approved during recent years, in 2005 it was a question of their implementation – espe-cially of “Lamfalussy Level II” – i.e. laying down regulations for implementing the directives in individual member coun-tries. The Commission of European Securities Regulators (CESR) drew up proposals for this purpose which are being reviewed by the European Commission for final adoption by the European Securities Committee.

The new EU Commissioner for Internal Market and Services, Charly McCreevy of Ireland, published a “Green Paper on Financial Policy 2005 – 2010” early in the reporting period. The most frequently expressed wish during the ensuing review procedures was for fewer regulations to be produced in the future.

The concrete implementation of the rules that have grown out of the new provisions has shown that it needs to accom-modate IT projects, and is very time-consuming and costly. This has already led to the deferral of effective dates. Accord-ing to the latest proposals, for example, the Markets in Financial Instruments Directive (MiFID) should not come into force before November 2007. Open questions and sharp differences arising from diverging interests still surround this most important directive for securities markets – espe-cially in connection with the lifting of the exclusive trading obligation. Based on the objectives drafted in Lisbon con-cerning the competitiveness of Europe’s capital markets, competition between exchanges is spreading. This is leading to fragmented markets and hence to loss of transparency. While this may create advantages for professional market participants, it does not necessarily improve the quality of markets from an economic standpoint. A better solution

might be to leave stock exchanges in a monopoly situation and step up competition between market participants. Exchanges are fighting for the right to compete with other markets – exchanges, multilateral trading facilities (MTFs) and in-house trading by banks – on equal terms. This could result in banks having to comply with pretrade transparency rules similar to those required for exchanges, and in best execution rules being introduced to ensure that investors would end up obtaining the best possible price, despite mar-ket fragmentation. The competition now being sought would come at a high cost – possibly too high, from the standpoint of investors. It should also be borne in mind that infrastruc-ture providers (exchanges and clearing / settlement organiza-tions) do not generate the bulk of transaction costs.

The derailing of the EU constitution has had an impact on the FSAP-related directives that emerged from the Lamfa-lussy process. The European Parliament initially approved this new EU legislation only because the ordinances it com-prised were declared provisional and automatically lapse after four years. This will already be the case for the Market Abuse Directive (MAD) in 2007, and the question now being asked is how to prevent MAD from automatically lapsing next year. The constitution would have institutionalized the Lam-falussy process and regulated the participation of the various bodies involved.

The CESR’s so-called Himalaya Report gave rise to heated discussion and criticism, as it pointed out problems in pan-European application of legislation. Restrictions on self-regulation by stock exchanges were supposed to simplify Europe’s regulatory framework. But they actually strength-ened the position of national regulators, who now defend their extensive power and authority at the national level. However, cross border application of legislation is becoming all the more important as an increasing number of exchanges like Euronext, OMX and also SWX and virt-x build networks that extend across national boundaries.

Marc Berthoud, Deputy Head of the SWX Information Prod-ucts Division, is stepping down after five years as Chairman of the FESE Economics and Statistics Committee. He will nevertheless remain a committee member. During these five years, Mr Berthoud contributed substantially to the building of a harmonized statistical database that has made it pos-sible to retrieve comparable data on securities exchanges.



FESE representatives (status 1 January 2006)

Chairman:Massimo Capuano President and CEO, Gruppo Borsa Italiana SpA

Vice Chairman:Jukka Ruuska President of OMX Exchanges

Chairman of the Working Committee:Poul Erik Skaanning-Jörgensen Senior Vice President, Copenhagen Stock Exchange Ltd

Secretariat, Brussels:Judith Hardt Secretary General

FESE members

Full membersAthens ExchangeBolsas y Mercados Españoles (BME): Barcelona, Bilbao, Madrid, MEFF, ValenciaBratislava Stock ExchangeBudapest Stock Exchange LtdCyprus Stock ExchangeDeutsche Börse AG

Euronext: Amsterdam, Brussels, Lisbon, Paris, LiffeICE FuturesIceland Stock ExchangeIrish Stock ExchangeItalian ExchangeLjubljana Stock Exchange

LME – London Metal ExchangeLondon Stock ExchangeLuxembourg Stock ExchangeMalta Stock ExchangeNOS – Norwegian Futures & Options Clearing HouseOMX Exchanges Ltd: Stockholm, Helsinki, Copenhagen, Riga, Talinn, Vilnius

Oslo Stock ExchangePrague Stock ExchangeSWX Swiss Exchangevirt-xWarsaw Stock ExchangeWiener Börse AG



WFE representatives (status 1 January 2006)

Chairman: Taizo Nishimuro Chairman & Acting President and CEO

Vice Chairman: Massimo Capuano President and CEO, Gruppo Borsa Italiana SpA

Chairman of the Working Commission: Gilberto Mifano CEO, Bolsa de Valores do São Paulo

Secretariat, Paris: Thomas Krantz Secretary General

Peter Clifford Deputy Secretary General

World Federation of Exchanges (WFE)www.world-exchanges.org

The WFE’s 2005 general meeting was held last November in Mumbai under the chairmanship of Takuo Tsurushima, Chairman and CEO of the Tokyo Stock Exchange. Three new members were accepted: the Cairo & Alexandria Stock Exchanges; the Cyprus Stock Exchange; and the Stock Exchange of Mauritius, bringing the total number of WFE members to 57. The visit to Mumbai provided an opportunity to gather information about relevant developments on the Indian subcontinent. Until ten years ago, the Bombay Stock Exchange was the undisputed leader of more than 20 regional stock markets. Then the fully automated National Stock Exchange was set up and has since absorbed about 80 % of trading volume.

WFE organized a number of events in the reporting year, highlighted by a conference on emerging markets in Beijing. Another conference on exchange technologies was held at MIT in Boston, where the SWX Swiss Exchange presented the Quotematch programme. It should also be pointed out that the statistics published by WFE give a valuable overview of the world’s secur-ities and derivatives exchanges.

WFE members

American Stock ExchangeAthens ExchangeAustralian Stock ExchangeBermuda Stock ExchangeBME Spanish ExchangesBolsa de Comercio de Buenos AiresBolsa de Comercio de SantiagoBolsa de Valores de ColombiaBolsa de Valores de LimaBolsa de Valores do São PauloBolsa Mexicana de ValoresBombay Stock Exchange LtdBorsa Italiana SpABourse de LuxembourgBourse de MontréalBudapest Stock Exchange LtdBursa MalaysiaCairo & Alexandria Stock Exchanges

Chicago Board Options ExchangeColombo Stock ExchangeCopenhagen Stock ExchangeCyprus Stock ExchangeDeutsche Börse AGEuronext: Amsterdam, Brussels, Lisbon, ParisHong Kong Exchanges and ClearingIrish Stock ExchangeIstanbul Stock ExchangeJakarta Stock ExchangeJSE LimitedKorea ExchangeLjubljana Stock ExchangeLondon Stock ExchangeMalta Stock ExchangeNASDNational Stock Exchange of India LimitedNew York Stock Exchange

New Zealand Exchange LtdOMX Exchanges LtdOsaka Securities ExchangeOslo BørsPhilippine Stock ExchangeShanghai Stock ExchangeShenzhen Stock ExchangeSingapore ExchangeStock Exchange of MauritiusStock Exchange of TehranStock Exchange of ThailandSWX Swiss ExchangeTaiwan Stock Exchange Corp.Tel-Aviv Stock ExchangeTokyo Stock ExchangeTSX GroupWarsaw Stock ExchangeWiener Börse AG



International Organization of Securities Commissions (IOSCO)www.iosco.org

IOSCO, the international umbrella organization of securities regulators, was founded in 1983. It supports cooperation between financial markets by developing globally accepted standards. The organization currently has about 180 members from all parts of the world. Switzerland’s Federal Banking Commission (SFBC) has been an ordinary member of IOSCO since 1996. As an affiliated member, the SWX Swiss Exchange is represented on Standing Committee No. 1 (SC 1) and also on the Self- Regulatory Organizations (SRO) Consultative Committee.

IOSCO is mainly concerned with protecting investors; ensuring fair, efficient and transparent markets; preventing systematic risks; promoting international cooperation; and drawing up harmonized standards for market supervision. As part of investor protection, the organization also drafts financial reporting and auditing standards.

The various committees adopted numerous working papers and resolutions in 2005. These included an agreement on setting up a database to help coordinate the implementation of International Financial Reporting Standards (IFRS). Last October, a review procedure was initiated for an IOSCO-sponsored report entitled “International disclosure principles for cross-border offerings and listings of debt securities by foreign issuers”. IOSCO also announced that it would commission a study on hedge funds in 2006. Details of the organization’s wide-ranging activities can be found at www.iosco.org / library /.



IOSCO representatives (status 1 January 2006)

Chairwoman:Jane Diplock Chairperson, Securities Commission, New Zealand

Chairman:Rob Barrow Executive Officer, Financial Services Board, South Africa

Chairman, Emerging Markets Committee: Dogan Cansizlar Chairman, Capital Markets Board, Turkey

Chairwoman, Self-Regulatory Organizations (SRO) Consultative Committee: Mary L. Schapiro Vice Chairman of NASD, United States of America

Secretariat, Madrid: Philippe Richard Secretary General

SWX Representative of Switzerland in IOSCO Standing Committee No. 1: Philipp Leu Assistant Vice President

SWX Representative of Switzerland in IOSCO Disclosure Subcommittee: Jacqueline Morard Senior Vice President

SWX Representative in Self-Regulatory Organizations (SRO) Consultative Committee: Walter M. Ochsner Executive Vice President


128 GlossarySWX Group Annual Report 2005

(SXI)® and the Swiss Bond Index (SBI)®, various other industry- and sector-specific

indices are calculated.

http: / / www.swx.com / trading / products / indices_en.html

Initial public offering (IPO)

This is a company’s first issue of shares in the stock market. An IPO (also known as

flotation) enables a previously unlisted company to offer investors its shares, which

are then traded on a stock exchange.

“Inside market” exchange rate

Settlement date rates of exchange together with an indication of the best bid and ask

prices.

International bonds (Eurobonds)

These are bonds which are issued in a foreign currency (not in Swiss francs) by a

foreign borrower.

International equities

Listed equities whose issuers are legally domiciled outside of Switzerland and the

Principality of Liechtenstein.

Issuer

A private-sector company or public entity that acquires funding through the issuance

of securities (shares, bonds, etc.).

Listed securities

Securities that have completed the listing procedure in accordance with the provi-

sions of the Listing Rules and fulfil the requirements for maintained listing. Further

details can be accessed via:

http: / / www.swx.com / market / shares / quotes / swiss / table_en.html

Market capitalization

The free-float-adjusted market value of a company’s outstanding shares. It is calcu-

lated by multiplying the number of freely marketable shares by their current price.

Further details on the calculation and application of free float can be found in the SPI

Rules:

http: / / www.swx.com / download / trading / products / indices / stock_indices / spi /

spi_index_rules_en.pdf

Market-making

Market makers post continual bid and ask prices for specific securities (making a

market). There is no obligation to make a market on SWX. All such activities are

voluntary and are governed by separate agreements. At present, there are separate

market-making agreements for the ETF and international bonds market segments.

Off-order-book (off-exchange trading)

A term for trades that, in keeping with provisions governing the duty to trade on

the exchange, are not matched via the order book but instead are executed off-

exchange. Examples are transactions concluded by means of the Statement of Inter-

est, Addressed Offer, Trade Confirmation, Reported Trade, or Post-Recorded Trade

functional features.

Addressed Offer

An off-exchange functional feature with which a participant may direct to some other

participant a binding offer to purchase or sell a specific amount of SWX-listed secur-

ities. The recipient may accept, ignore or reject the offer. An addressed offer does not

appear in the order book because the offer is directed to a specific participant and not

all market participants.

Admission to trading

In contrast to the SWX Swiss Exchange, virt-x has no formal listing procedure of its

own. Admission of securities to trading on virt-x is possible once they have been

approved for listing by the competent regulatory body at a stock exchange in the EU

or in Switzerland. Additional information can be accessed via:

http: / / www.swx.com / admission / listing / equity_market_en.html

Central counterparty (CCP)

The CCP is an organization that acts as formal counterparty in all purchase and sale

transactions. Delivery always takes place net (i.e. all purchases and sales are offset

against each other). This mechanism is designed to eliminate the counterparty risk

represented by participants with different credit ratings.

Closed-end funds

Closed-end funds are investment funds with a fixed capital. As a rule, the fund man-

ager does not issue any new units and is also not obliged to redeem units. The Swiss

Investment Fund Act does not allow these funds to be sold to the general public.

However, a closed-end fund may be operated as a joint-stock company, in which case

it is called an investment company. The operations of investment companies do not

fall within the scope of the Investment Fund Act.

Eurex trading volume

The number of contracts traded on Eurex during a given period of time.

Exchange-traded funds (ETFs)

ETFs are listed funds which are traded permanently on the exchange and replicate an

established benchmark (index). These investment vehicles are just as flexible and

liquid as equities. Like equities, they also offer opportunities for short sales and

arbitrage transactions, which are particularly helpful for institutional investors in

terms of market-oriented trading.

FIX Protocol

Abbreviation for Financial Information Interchange Protocol. Among other things, the

FIX Protocol is the de facto standard for order routing.

Foreign bonds

Listed Swiss franc bonds whose issuers are legally domiciled outside of Switzerland

and the Principality of Liechtenstein.

Indices

The SWX Swiss Exchange offers a wide range of indices that reflect the performance

of the Swiss securities market. In addition to well-known indices such as the Swiss

Performance Index (SPI)®, Swiss Market Index (SMI)®, SWX Special Industry Index


129Glossary SWX Group Annual Report 2005

On-order-book (on-exchange trading)

A term for orders that have been routed via the trading system to the order book and

executed by means of matching. This applies to both cash and forward trans-

actions.

Order book

An electronic order book in which buy and sell orders are executed on-exchange

according to price / time priority.

Order-driven markets

Segments or products for which sufficient liquidity is ensured through the regular

entry of individual orders and no need for market making exists.

Order-matching function

The matching of buy orders against sell orders with subsequent execution and report-

ing via the trading system.

Order routing

The process in which participants forward third-party orders by means of an electronic

interface directly to the exchange for execution.

Participants

Banks and brokerage houses that are in possession of a securities dealer licence* and

have concluded an agreement with the SWX Swiss Exchange and / or virt-x. Par ticipants

are entitled to trade on the SWX Swiss Exchange and / or virt-x. The Annual Report of

the SWX Group lists only those participants that are elec tronically connected to the

SWX / virt-x trading infrastructure. Participants without such technical connectivity or

those in the process of establishing connectivity, as well as CCPs and network con-

nectivity providers, are not reflected in the diagrams.

* The Swiss Federal Banking Commission requires that participants be in possession of a securities dealer licence in order for them to engage in active trading on the SWX Swiss Exchange and virt-x. However, this does not apply to participants that trade exclusively on virt-x.

Portfolio trades

Orders that have been bunched together for execution.

Quote-driven markets

Segments or products for which a market maker or liquidity provider often ensures

sufficient liquidity.

Repo market

In a repo (repurchase agreement) transaction, a borrower sells securities to a lender

with the simultaneous agreement to repurchase securities of the same type and quan-

tity at a prearranged later date. In the repo market, a differentiation is made between

general collateral (GC) repos and special repos. For central banks, the repo market

today is one of the most important instruments for adding or draining liquidity from

the system and thus implementing monetary policy. The Swiss National Bank (SNB)

conducts its open-market operations exclusively via repos.

http: / / www.eurexrepo.com / index2.html

Securitized derivatives

The derivative financial instruments tradable on the SWX Swiss Exchange are securities

in their own right (securitized derivatives) which are issued by a third party, normally

a bank. They are sub divided into two main categories: warrants and structured prod-

ucts. http: / / www.swx.com / trading / products / derivatives_en.html

Statement of interest

An off-exchange functional feature with which a participant may indicate to all market

participants that it wishes to trade a certain security. Hence prior to entering the

specific order, a trader can disseminate a non-binding query to the market.

Straight-through processing

Once an order has been entered, no further manual intervention is necessary. The

execution will be automatically cleared and settled. The Swiss Value Chain partners

(see “Swiss Value Chain”) integrated the relevant subsystems at an early stage and

thus created competitive advantages for the Swiss financial marketplace.

Swiss bonds

Listed Swiss franc bonds whose issuers are legally domiciled in Switzerland or the

Principality of Liechtenstein.

Swiss equities

Listed shares whose issuers are legally domiciled or conduct the majority of their

activities in Switzerland or the Principality of Liechtenstein.

Swiss Value Chain

A partnership between the companies that provide the infrastructure for the Swiss

financial marketplace: SWX Swiss Exchange / virt-x (trading), SIS x-clear (central

counterparty), SIS SegaInterSettle (settlement) and Swiss Interbank Clearing AG

(a wholly owned subsidiary of Telekurs Holding AG; clearing). The Swiss Value Chain

is the series of mechanisms that enables the complete integration of trading, clearing

and settlement, securities safekeeping and the payment of securities transactions.

Trades (cash market)

Number of individual transactions executed during the period (single counting).

Trade processing

The process involved in the entry and execution of a securities trade.

Turnover (cash market)

The monetary value of securities traded during a given period of time.

Volume (cash market)

The quantity of individual securities traded during a given period of time.


130 MastheadSWX Group Annual Report 2005

Disclaimer

The content of this publication is for informational purposes only. None of the information contained herein constitutes a solicitation, offer or recommendation to purchase

or sell any financial instrument or to effect other transactions. No guarantee is made as to the completeness or correctness of said information, nor shall any liability whatsoever

be accepted for any damage arising from actions taken on the basis of information contained in this or any other publication of the SWX Group or its subsidiary companies.

The right at all times to alter the relevant prices or product composition remains reserved.

© SWX Swiss Exchange, April 2005

The SWX Swiss Exchange is a joint-stock company established under the laws of Switzerland, operating a stock exchange authorized and regulated by the Swiss Federal Banking

Commission. The SWX Swiss Exchange is a recognized stock exchange in France, Italy, the Netherlands and the UK and is authorized to operate in Austria, Finland, Germany,

Sweden and Belgium.

® SWX, SWX Swiss Exchange, SWX Group, SWX Quotematch, SPI, Swiss Performance Index (SPI), SPI LARGE, SPI MID, SPI SMALL, SPI EXTRA, SMI, Swiss Market Index

(SMI), SMIM, SMI MID (SMIM), SMI Expanded, SXI, SXI LIFE SCIENCES, SXI Bio+Medtech, SBI, SBI Swiss Bond Index and VSMI are registered or lodged trademarks of the

SWX Swiss Exchange, and any use thereof is subject to a licensing fee.

© Copyright virt-x plc and virt-x Exchange Ltd (“virt-x”) 2003

All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing it in any medium by electronic means and

whether or not transiently or incidentally to some other use of this publication without the written permission of the copyright owner) except in accordance with the provisions

of the Copyright, Design and Patents Act (1988).

Whilst every care has been taken to ensure that this publication is accurate and not misleading, no responsibility is accepted by virt-x, its servants or agents for any loss or

otherwise arising from any error, omission or reliance upon the information contained within this publication. The contents of this publication are for information only and shall

not constitute investment advice. Any information herein is not intended for solicitation purposes but only for the use of general information. All descriptions, examples and

calculations contained herein are for guidance purposes only and should not be treated as definitive.

Publisher

SWX Group

Selnaustrasse 30, Postfach, CH-8021 Zurich

T +41(0)58 854 54 54, F +41(0)58 854 54 55

www.swxgroup.com

Direction

Corporate Communications, SWX Swiss Exchange

Design and layout

Wirz Corporate AG, Zurich

Photography

Front cover: Manfred Richter, vision on wings, Reinach (BL)

Inside pages: Katharina Wernli, Zurich

Photolithography and printing

Linkgroup, Zurich


SWX Group 2005 2004 Change

Revenue* 379 494 358 821 + 5.8 %

Profit* 89 247 56 211 + 58.8 %

Cash flow* 129 220 76 806 + 68.2 %

Total assets* 545 106 436 375 + 24.9 %

Equity* 446 161 357 403 + 24.8 %

Staff numbers 469 467 + 0.4 %

* in CHF 1 000

SWX Swiss Exchange and virt-x 2005 2004 Change

Exchange trading turnover (in CHF m) 1 449 242 1 224 078 + 18.39 %

Number of transactions 17 954 179 14 697 404 + 22.16 %

Number of listed securities 7 956 5 888 + 35.12 %

SPI market capitalization (in CHF m) 1 174 753 886 748 + 32.48 %

Subsidiaries 2005 2004 Change

SWX Swiss Exchange (in CHF 1 000)

Revenue 358 359 342 440 +4. 7 %

Profit 76 715 42 594 + 80.1 %

virt-x (in GBP 1 000)

Revenue 45 023 39 466 + 15.6 %

Profit 3 126 2 244 + 39.3 %

EXFEED (in CHF 1 000)

Revenue 19 759 18 651 + 5.9 %

Profit 2 202 1 185 + 85.8 %

KEY FIGURES

ABACUS Wertpapier Handelsgesellschaft GmbH, Köln; ABN AMRO Bank N.V., Zweigniederlassung Zürich, Zürich; ABN AMRO Bank N.V. London Branch, London EC2M 4AA; AIG Private Bank Ltd., Zürich; Banca del Gottardo, Lugano; Bank am Bellevue, Küsnacht ZH; Bank CIAL (Schweiz), Basel; Bank Hofmann AG, Zürich; Bank Julius Bär & Co. AG, Zürich; Bank Leu AG, Zürich; Bank Sal. Oppenheim jr. & Cie (Schweiz) AG, Zürich; Bank Sarasin & Cie AG, Zürich; Bank Vontobel AG, Zürich; Banque Bonhôte & Cie SA, Neuchâtel; Banque Cantonale de Genève, Genève; Banque Cantonale Vaudoise, Lausanne; Banque Privée Edmond de Rothschild SA, Genève; Banque SCS Alliance SA, Zürich; Barclays Bank plc, London; Basler Kantonalbank, Basel; Bayerische Hypo- und Vereinsbank AG, München; BNP Paribas Private Bank (Switzerland) SA, Genève 11; BSI SA, Lugano; BZ Bank Aktiengesellschaft, Wilen b. Wollerau; Citigroup Global Markets Deutschland AG & Co. KGaA, Frankfurt

am Main; Cornèr Banca SA, Lugano; Coutts Bank von Ernst AG, Zürich; Crédit Agricole Cheuvreux S.A., Paris La Défense Cedex; CREDIT SUISSE, Zürich; Credit Suisse Securities (Europe) Ltd, London; Deutsche Bank (Schweiz) AG, Zürich; Deutsche Bank AG, Frankfurt; Deutsche Bank AG London Branch, Londo; Dresdner Kleinwort Wasser-stein Securities Ltd., London; Dreyfus Söhne & Cie AG, Banquiers, Basel; E. Gutzwiller & Cie, Banquiers, Basel; E*Trade Securities Limited, London; EFG Bank, Zürich; Ehinger & Armand von Ernst AG, Zürich; Exane SA, Paris;

Fimat International Banque SA (UK Branch), London; Fortis Bank Global Clearing N.V., Frankfurt Branch, Frankfurt; Goldman Sachs Bank AG, Zürich; Helvea SA, Genève 6; Hottinger & Cie, Banquiers, Zürich; HSBC Bank plc, Thames Exchange, London; HSBC Private Bank (Suisse) SA, Genève 3; Hypothekarbank Lenzburg, Lenzburg; Instinet Europe Limited, London; Instinet Europe Limited, London, Zürich Branch, Zürich; J. P. Morgan Securities Ltd., London; Joh. Berenberg, Gossler & Co. KG, Hamburg; Kepler Equities, Zurich Branch, Zürich; Kredietbank SA, Luxemburg; La Roche & Co Banquiers, Basel; Lehman Brothers International (Europe) Ltd., London; LGT Bank in Liechtenstein AG, Vaduz; Lombard Odier Darier Hentsch & Cie, Genève 11; Maerki Baumann & Co. AG, Zürich; Maple Bank GmbH, Frankfurt; Merrill Lynch Capital Markets AG, Zürich; Merrill Lynch International, London; Mirabaud & Cie, Banquiers, Genève 11; Morgan Stanley & Co. Intern. Ltd., London; NeoNet Securities AB, Stockholm; NZB Neue Zürcher Bank, Zürich; Pictet & Cie Banquiers, Genève 11; Privatbank IHAG Zürich AG, Zürich; Privatbank Von Graffenried AG, Bern 7; Rabobank Inter-national, Utrecht Branch, Utrecht; Rahn & Bodmer Banquiers, Zürich; Raiffeisen Centrobank AG, Wien; Rüd Blass & Cie AG, Zürich; Schroder & Co. Bank AG, Zürich; SG Private Banking (Suisse) SA, Genève 11; Société Générale, Paris – La Défense; Cedex, Société Générale Paris, Zweigniederlassung Zürich, Zürich; Société Générale S.A., London Branch, London; Susquehanna International Securities Ltd., Dublin 1; swissfirst Bank AG, Zürich; Swissnetbank.com AG, Zürich; Swissquote Bank, Gland; Timber Hill (Europe) AG, Zug; UBS AG, Zürich; Union Bancaire Privée, Genève 1; Van der Moolen Effecten Specialist BV, Amsterdam; Wegelin & Co. Privatbankiers, St. Gallen; Winterflood Securities Ltd., London; Zürcher Kantonalbank, Zürich; Aargauische Kantonalbank, Aarau; AB FIN S.A., Paradiso; ABN AMRO Bank (Schweiz), Zürich; ACH – Securities SA, Genève; Adler & Co. Privatbank AG, Zürich; AKB Privatbank Zürich AG, Zürich; Alpha RHEINTAL Bank, Berneck; Amas Bank (Schweiz) AG, Zürich; Amtsersparniskasse Schwarzenburg, Schwarzenburg; Amtsersparniskasse Thun, Thun; ANGLO IRISH BANK (SUISSE) SA, Genève 1; Anker Bank, Zürich; Appenzeller Kantonalbank, Appenzell; Arab Bank (Switzerland) Ltd., Zürich; Arbinter-Omnivalor SA, Société financière d’arbitrage int., Genève; Arbitrium Finanz AG, Zürich; ARVEST Privatbank AG, Pfäffikon SZ; Arzi Bank AG, Zürich; Aston Bond SA, Lugano; ATAG Asset Management AG, Bern; Atlantic Vermögensverwaltungsbank, Zürich; Atlas Capital SA, Genève; Bâloise Bank SoBa, Solothurn; Banca Aletti & Cie (Suisse) SA, Lugano; Banca Arner SA, Lugano; Banca Commerciale Lugano SA, Lugano; Banca del Ceresio SA, Lugano; Banca dello Stato del Cantone Ticino, Bellinzona; Banca del Sempione, Lugano; Banca di Credito e Commercio SA, Lugano; Banca Euromobiliare (Suisse) SA, Lugano; Banca GESFID, Lugano; Banca Intermobiliare di Investimenti, e Gestioni (Suisse) SA, Lugano; Banca Julius Baer (Lugano) SA, Lugano; Banca Popolare di Sondrio (Suisse), Lugano; Banca Privata Edmond de Rothschild Lugano SA, Lugano; Banca Unione di Credito (BUC), Lugano; Banco Santander Central Hispano (Suisse) S.A., Genève 1; Bank CA St. Gallen, St. Gallen; Bank Coop AG, Basel; Bank EEK, Bern 7; Bank Frey & Co. AG, Zürich; Bank für Tirol und Vorarlberg Akti-engesellschaft, Innsbruck, Zweigniederlassung , Staad, Staad; Bank Hapoalim (Schweiz) AG, Zürich; Bank Hugo Kahn & Co. AG, Zürich; Bank im Thal, Balsthal; Bank in Zuzwil, Zuzwil SG; Bank Jura Laufen, Delémont; Bank Leerau, Kirchleerau; Bank Leumi le-Israel (Schweiz), Zürich; Bank Linth, Uznach; Bank Morgan Stanley AG, Zürich; Bank of New York – Inter Maritime Bank, Geneva, Genève 1; Bank Sparhafen Zürich, Zürich; Bank Thalwil, Thalwil; Bank Thur, Ebnat-Kappel; Banque Amas (Suisse) SA, Genève 1; Banque Audi (Suisse) SA, Genève 12; Banque Banorient (Suisse), Genève 3; Banque Baring Brothers (Suisse) SA, Genève 3; Banque Bauer (Suisse) SA, Genève; Banque Bénédict Hentsch & Cie SA, Genève 11; Banque Cantonale de Fribourg, Fribourg; Banque Cantonale du Jura, Porrentruy; Banque Cantonale du Valais, Sion; Banque Cantonale Neuchâteloise, Neuchâtel; Banque Cramer & Cie SA, Genève 11; Banque de Commerce et de Placements SA, Genève 1; Banque de Dépôts et de Gestion, Lausanne; Banque de Gestion Financière, Zürich; Banque Degroof (Suisse) SA, Genève 1; Banque de la Méditeranée (Suisse) SA, Genève 1; Banque de Patrimoines Privés Genève BPG SA, Genève 25; Banque Diamantaire (Suisse), Genève; Banque Franck, Galland & Cie SA, Genève 3; Banque Jacob Safra (Suisse) SA, Genève 11; Banque Jenni & Cie. SA, Basel; Banque Julius Baer & Cie. SA, Genève 3; Banque MeesPierson BGL SA, Zürich; Banque Pasche SA, Genève 11; Banque Piguet & Cie SA, Yverdon-les-Bains; Banque Safdié SA, Genève 11; Banque Syz & Co. SA, Genève; Banque Thaler SA, Genève 3; Banque Vontobel Genève SA, Genève; Bantleon Bank AG, Zug; Barclays Bank (Suisse) SA, Genève 3; Basellandschaftliche Kantonalbank, Liestal; Baumann & Cie. Banquiers, Basel; BBO Bank Brienz Oberhasli, Brienz; BBVA Privanza Bank (Suiza) SA, Zürich; BEKB | BCBE, Bern; Berenberg Bank (Schweiz) AG, Zürich; Bernerland Bank, Sumiswald; Bezirksspar-kasse Dielsdorf, Dielsdorf; Bezirkssparkasse Uster, Uster; BGG Banque Genevoise de Gestion, Genève; BGP Banca di Gestione Patrimoniale SA, Lugano; BHF-Bank (Schweiz) AG, Zürich; Biene – Bank im Rheintal, Altstätten SG; BIPIELLE Bank (Suisse), Lugano; BLP Banque de Portefeuilles, Lausanne; BNP PARIBAS (SUISSE) SA, Zürich; Bondpartners SA, Lausanne; Bordier & Cie, Banquiers privés, Genève 11; Bovay & Partenaires SA, Lausanne; Bridport & Cie SA, Genève 3; BS Bank Schaffhausen, Neuhausen am Rheinfall; C.I.M Banque, Genève; Caisse d’Epargne d’Aubonne, Aubonne; Caisse d’Epargne de Courtelary, Courtelary; Caisse d’Epargne de la Ville de Fribourg, Fribourg; Caisse d’Epargne de Nyon, Nyon; Caisse d’Epargne de Prez, Corserey et Noréaz, Prez-vers-Noréaz; Caisse d’Epargne de Siviriez, Siviriez; Caisse d’Epargne du District de Cossonay, Cossonay; Caisse d’Epargne du District de Vevey, Vevey 1; Caisse d’Epargne et de Prévoyance SA, Yverdon-les-Bains; Caixa Bank Banque Privée (Suisse) SA, Genève; CAT Finance AG, Zürich; Citation SA, Zürich; Citibank (Switzerland), Zürich; Clariden Bank, Zürich; Clientis AG, Bern; Clientis Bank Huttwil, Langenthal; Clientis Regiobank Männedorf, Männedorf; Commerzbank (Schweiz) AG, Zürich; Compagnie Bancaire Espirito Santo SA, Lausanne; Crédit Agricole (Suisse) SA, Zürich; Crédit Mutuel de la Vallée SA, Le Sentier; Credito Privato Commerciale SA, Lugano; CREDIT SUISSE FIDES, Zürich; Credit Suisse Private Advisors, Zürich; Daiwa Securities SMBC Europe Limited, London, Geneva Branch, Genève; DC Bank Deposito-Cassa der Stadt Bern, Bern; Decova SA, Genève; Deka (Swiss) Privatbank AG, Zürich; Delen (Suisse) SA, Genève 11; Dexia Privatbank (Schweiz) AG, Zürich; Dominick Company AG, Privatbank, Zürich; Dresdner Bank (Schweiz) AG, Zürich; DRYDEN BANK SA, Genève 1; DZ PRIVATBANK Schweiz, Zürich; EB Entlebucher Bank, Schüpfheim; EFG Bank European Financial Group, Genève 2; EGOBANK SA, Lugano; Ersparnisanstalt der Stadt St. Gallen, St. Gallen; Ersparnisanstalt Oberuzwil, Oberuzwil; Ersparnisgesellschaft Küttigen, Küttigen; Ersparniskasse Affoltern i.E., Affoltern im Emmental; Ersparniskasse des Amtsbezirks Interlaken, Interlaken; Ersparniskasse Erlinsbach, Erlinsbach; Ersparniskasse Rüeggisberg, Rüeggisberg; Ersparniskasse Schaffhausen, Schaff-hausen; F. van Lanschot Bankiers (Schweiz) AG, Zürich; Fibi Bank (Schweiz) AG, Zürich; FIDEURAM Bank (Suisse) SA, Lugano; Fidurhône SA, Genève 3; Finacor SA, Basel; Financière Mermod SA, Lausanne; Financière SBA (Suisse) SA, Genève 3; Finter Bank Zürich, Zürich; Glarner Kantonalbank, Glarus; Gonet & Cie, Banquiers, Genève 11; Graubündner Kantonalbank, Chur; GRB Glarner Regionalbank Schwanden, Schwanden; Habib Bank AG Zürich, Zürich; Hardcastle Trading AG, Rapperswil; Heritage Bank & Trust, Genève 3; HSBC Guyerzeller Bank AG, Zürich; HYPOSWISS Privat-bank AG, Zürich; IBI Bank AG, Zürich; IMC International Marketmakers Combination BV, Amsterdam, Zweigniederlassung Zug, Zug; ING BANK (Switzerland) Ltd, Genève 6; Institut de Crédit et de Dépôts S.A., – ICRED S.A., Lugano; Investec Bank (Switzerland) AG, Zürich; Israel Discount Bank (Switzerland) SA, Genève 3; ITAG Vermögensverwaltung, Basel; J. P. Morgan (Suisse) SA, Genève 1; Jefferies (Switzerland) Ltd., Zürich; Jyske Bank (Schweiz), Zürich; Kredietbank (Suisse) SA, Genève 11; Landolt & Cie, Banquiers, Lausanne; Lavoro Bank AG, Zürich; LB (Swiss) Privatbank AG, Zürich; LBBW Schweiz AG, Zürich; Leihkasse Stammheim, Oberstammheim; Lemanik SA, Lugano; LGT Bank (Schweiz) AG, Zürich; Lienhardt & Partner Privatbank Zürich AG, Zürich; Lloyds TSB Bank plc, Zürich; Luzerner Kantonalbank, Luzern; M.M. Warburg Bank (Schweiz) AG, Zürich; Mangold Management Co. Ltd., Lausanne; MediBank, Zug; Merrill Lynch Bank (Suisse) SA, Genève 3; Merrill Lynch Pierce Fenner & Smith Inc.,, Représentation de Genève, Genève 3; MFC Merchant Bank SA, Herisau; MIGROSBANK, Zürich; Mirelis InvesTrust SA, Genève; Mitsubishi Tokyo Wealth Management Ltd., (Switzerland), Genève; Mizuho Bank (Schweiz) AG, Zürich; Morval & Cie SA, Genève; Mourgue d’Algue & Cie, Banquiers, Genève 3; Neue Aargauer Bank, Aarau; Nidwaldner Kantonalbank, Stans; Nomura Bank (Switzerland) Ltd., Genève 11; Nordea Bank SA Luxemburg, Zweigniederlassung Zürich, Zürich; NPB Neue Privat Bank AG, Zürich; Obersimmentalische Volksbank, Zweisimmen; Obwaldner Kantonalbank, Sarnen; OZ Bankers AG, Pfäffikon SZ; OZ Holding, Pfäffikon SZ; PETERCAM Banque Privée (Suisse) SA, Centre Swissair, Genève 15 Echange; Pictet Asset Management SA, Genève, Genève; PKB Privatbank AG, Lugano; Plenum Securities AG, Zürich; Privatbank Bellerive AG, Zürich; Private Client Bank, Zürich; Quantus Asset Management AG, Glattzentrum bei ; Wallisellen; RAS Private Bank (Suisse) S.A., Lugano; RBA-Zentralbank, Bern; Regiobank Solothurn, Solothurn; Reichmuth & Co., Privatbankiers, Luzern 7; Reyl & Cie. SA, Genève; Rothschild Bank AG, Zürich; Royal Bank of Canada (Suisse), Genève 11; Russische Kommerzial Bank AG, Zürich; Sagefor SA, Genève; Sallfort AG, Basel; Sanpaolo Bank (Suisse) SA, Lugano; SB Saanen Bank, Saanen; Schaff-hauser Kantonalbank, Schaffhausen; Schweizer Verband der Raiffeisenbanken, St. Gallen; Schwyzer Kantonalbank, Schwyz; Scobag AG, Basel; SEB PRIVATE BANK SA, Luxembourg, Genève; Sella Bank AG, Zürich; Selvi & Cie SA, Genève 11; SG Private Banking (Lugano-Svizzera) SA, Lugano; SIS SegaInterSettle AG, Zürich; SKANDIFINANZ BANK AG, Zürich; SLB Commercial Bank, Zürich; Società Bancaria Ticinese, Bellinzona; Société Bancaire Privée S.A., Genève 3; Sparcassa, Wädenswil, Wädenswil; Spargenossenschaft Mosnang, Mosnang; Sparkasse des Sensebezirks, Tafers; Sparkasse Engelberg, Engelberg; Sparkasse Horgen, Horgen; Sparkasse Küsnacht ZH, Küsnacht ZH; Sparkasse Oberriet, Oberriet; Sparkasse Oftringen, Oftringen; Sparkasse Schwyz, Schwyz; Sparkasse Wiesendangen, Wiesendangen; Sparkasse Zürcher Oberland, Wetzikon ZH; Spar- und Leihkasse Bucheggberg, Lüterswil; Spar- und Leihkasse Frutigen, Frutigen; Spar- und Leihkasse Gürbetal, Mühlethurnen; Spar- und Leihkasse Kirchberg, Kirchberg; Spar- und Leihkasse Münsingen, Münsingen; Spar- und Leihkasse Riggisberg, Riggisberg; Spar- und Leihkasse Steffisburg, Steffisburg; Spar- und Leihkasse Thayngen, Thayngen; Spar- und Leihkasse Wynigen, Wynigen; St. Galler Kantonalbank, St. Gallen; Swiss Capital Alternative Investments AG, Zürich; Swiss Investment Corporation Ltd., c/o Profilinvest, Genève; Swissregiobank, Gossau SG; Synthesis Bank, Genève 1; Tareno AG, Basel; Thurgauer Kantonalbank, Weinfelden; Trafina Privatbank AG, Basel; Trans Fiduciaire S.A., Lugano; Triba Partner Bank, Triengen; UBS Swiss Financial Advisers AG, Zürich, Zürich; UEB (Switzerland), Zürich; UFJ Bank (Schweiz) AG, Zürich; UniCredit (Suisse) Bank SA, Lugano; United Bank AG (Zürich), Zürich; United Mizrahi Bank (Schweiz) AG, Zürich; Urner Kantonalbank, Altdorf UR; Valiant Bank, Bern; Valiant Privatbank AG, Bern; Volksbank Bodensee AG, St. Margrethen; Vorarlberger Landes- und Hypothekenbank, St. Gallen; VP Bank (Schweiz) AG, Zürich; Zarattini & Co. SA, Lugano; ZLB Zürcher Landbank, Elgg; Zuger Kantonalbank AG, Zug

Leim

PARTICIPANTS


SWX

GROU

P A

nnua

l R

epor

t 2

00

5

SWX GROUP | Selnaustrasse 30 | Postfach | CH-8021 ZurichT +41(0)58 854 54 54 | F +41(0)58 854 54 55 | www.swxgroup.com

SWX GROUP: SWX Swiss Exchange, virt-x, Eurex, STOXX, EXFEED

TRADITION OF TECHNICAL INNOVATIONANNUAL REPORT 2005


Documents

41438dl SWX05 Inhalt e - SIX Group · 2010-02-11 · SWX Group Annual Report 2005 SWX Group 8