SIX has managed to post positive financial results for the first two quarters of 2021. This is in spite of the continuing difficulties of Covid-19 in the business world. However, these comparisons to 2020 should take the Covid-19 pandemic into account.
During the first half of 2021, SIX posted revenues of 745.8 million Swiss Francs. This is an increase of almost 20% when compared to the first half of 2020. There is a caveat to this figure, though. It includes revenue that was generated through the takeover of BME. During 2020, BME was only included for a single month of the first half of the year. For 2021, it is in place for the entire six months.
It means that when taking into account the contribution of BME, SIX is showing a 2.4% decrease in revenue. While it’s wrong to discount the contribution of BME completely, it does provide some context to the improved 2021 figures.
However, the overall improved figures also come in the face of a loss of market share for SIX. This is due to the UK and Swiss markets allowing their regulation to become aligned. It means that some of the market share SIX previously held has moved over to UK platforms.
SIX and BME both saw lower levels of securities traded during 2021, offset by positive growth in other areas of the company. The use of debit cards increased due to the situation that Covid-19 created. It meant that more online transactions were carried out than in previous years. However, ATM transactions fell as a result.
SIX also saw an increase in cryptocurrency trading. As a growing market, it’s expected to continue to experience rapid growth as it moves towards maturity.
Despite the fall in total securities trades, a large proportion of SIX’s profit still emanated from securities. This sector brought in 70.6 million Swiss Francs, which was only beaten by the markets sector, bringing in 84.2 million Swiss Francs.
While SIX and BME are currently separate entities, SIX is currently carrying out plans to merge the two platforms into a single SIX helmed platform.
Earlier in July, SIX revealed the acquisition of international London-based index and ETF data specialist ULTUMUS LTD. With this move, SIX aims to improve its data offering and to support its overall strategy to bring new data to its clients in a fast-growing market.
Having gained a degree in economics, Alan entered the world of financial services starting his career in London and then moving to New York for a number of years. His first post at a City bank saw him establish a reputation as an forex trader. Having recently returned from New York after eight successful years, Alan is now a prosperous trader in his own right concentrating on commodities and forex.