SIX, Deutsche Boerse End Structured-Products Venture

SIX Group and Deutsche Boerse AG will dissolve their Scoach joint venture for European structured products, after the Swiss exchange terminated the agreement.

The Swiss Exchange will run the Zurich part of the business called Scoach Swiss from June 30 and the Frankfurt unit will be run separately, executives from both companies said.

“We want more entrepreneurial freedom to shape the market,” Christian Katz, chief executive officer of the Swiss Stock Exchange said. “The two markets we united in 2007 were quite distinct at the time and the differences have been accentuated in the last few years.”

The two exchanges set up the platform in 2007. It specializes in securitized derivatives, whose prices are determined by movements of the underlying securities such as stocks or bonds.

“We will run our markets after dissolution and the brand situation will be discussed in the next couple of months,” Katz said in an interview.

Andreas Preuss, deputy chief executive officer of Deutsche Boerse, said the two companies were ending the venture as SIX Group had asked to terminate the agreement.