Evaluation of Key Indicators for the SIX Digital Exchange Pricing Department
SDX is the first worldwide exchange with an instant and integrated settlement and custodian on the platform. To support this unique project, this thesis explores how to monitor and evaluate the pricing volumetrics to inform SDX pricing and its commercial strategy.
Philippe Siegenthaler, 2021
Bachelor Thesis, SIX Digital Exchange AG
Betreuende Dozierende: Andreas Flückiger
Keywords: KPI, KI, Pricing, FMI, Financial Markets Infrastructure, Profitability, Controlling, Banking, Revenue
Pricing is more than numbers; it is about strategy and behaviour and is a tool to capture revenue. Pricing presents a particular challenge for early adaptors and innovative projects like SDX, as there are no benchmarks and competitors to facilitate orientation. Therefore, this thesis explores how to monitor and evaluate the pricing volumetrics to inform SDX pricing and its commercial strategy.
To find these volumetrics, explorative research was conducted by interviewing peers such as Swiss private banks, cantonal banks, and financial market infrastructures. In addition, to support the findings of the interviews, fundamental literature research was conducted including but not limited to first tier research of financial institutions.
The volumetrics chosen are defined as key performance indicators (KPI) and key indicators (KI). Eleven indicators were elaborated through the process and are illustrated in five dashboards, which are the key elements of this thesis.
The most meaningful indicators such as revenue and volume based KPIs are affecting the trading behaviour of clients such as banks and their clients in terms of trading volumes. Therefore, the importance of the pricing is crucial not only for clients, moreover, for SDX itself as important revenue streams emerge from trading volumes.
One of the key findings of this thesis argues that FMI pricing is from smaller importance for clients but is a driving factor for the FMIs survival.
Studiengang: Business Administration International Management (Bachelor)
Fachbereich der Arbeit: Accounting, Banking, Controlling and Finance