Liquidity Provision

ISP is a trading member of the BX Swiss stock exchange. Through this membership, ISP can quote executable buy and sell prices on financial instruments to help facilitate trades. This can be done by firms known as “liquidity providers”, acting as middlemen between buyers and sellers. 

Liquidity providers manage their own risks by adjusting their quotes based on market conditions. They guarantee that there is a constant possibility to trade securities on any side of the market which helps to keep it stable & efficient.

ISP provides this liquidity provision service in partnership with BX Swiss for underlyings such as stocks, ETPs, bonds and AMCs – especially for SMEs that go public. We hold a certain maximum spread level, order book depth and liquidity level on the current bid/ask in the order book.

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Advantages for Companies

How do companies stand to benefit from having their shares listed in partnership with ISP? 

  • Access to Capital:
By issuing shares on an exchange, companies reduce their financing costs and gain access to extra capital, which can be used for growth and expansion.
  • Public Recognition: 
Listing shares on an exchange increases the visibility of companies, increases their exposure and reach towards potential investors.
  • Enhanced Credibility: 
By meeting high standards required by financial authorities, companies enhance their credibility and reputation.
  • Increased Market Participation: 
The ease of buying and selling shares makes it more accessible for potential investors and increases the overall demand for the companies’ shares.
  • Improved Valuation: 
As market participation increases, so does the demand for shares. This increased demand impacts the valuation of companies, as investors are generally willing to pay more for shares that are in high demand.
  • Better Governance: 
Shareholders of exchange-listed companies tend to have more detailed information about companies’ performance, experience increased transparency and are assured that companies are being run in their best interest.
Advantages for Companies

Advantages for Investors

How do investors stand to benefit from having their shares listed in partnership with ISP? 

  • Increased Liquidity: 
Liquidity providers facilitate effortless buy and sell orders for companies’ floating capital. In practice, shares can be traded more easily and more quickly, therefore increasing trading efficiency.
  • Tight Bid-Ask Spread: 
Liquidity providers tend to offer tight bid-ask spread, meaning that the difference between buying and selling prices of a stock is small. Tighter spreads reduce trading costs and make it more attractive for investors.
  • Improved Price Discovery: 
Steady stream of buy and sell quotes reflect fair and accurate prices for a stock.
  • Better Overall Efficiency and Stability: 
Executable quotes increase the stability of trading and smooth market operations.
  • Greater Transparency: 
Easily accessible, accurate, transparent and up-to-date information about the market and stock prices assists investors in making informed decisions.
Advantages for Investors
Prime Example: Raising Capital via an IPO with ISP as Liquidity Provider
Prime Example: Raising Capital via an IPO with ISP as Liquidity Provider

What Is an IPO?

Why Do Companies Use IPOs?

How Does ISP Support Companies During IPOs?

What Is an IPO?

An Initial Public Offering (IPO) is the process by which a private company raises capital by issuing shares to the public for the first time. This allows the company to raise funds from a wide pool of investors, which can be used to finance growth, pay off debt or fund other business initiatives.

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Why Do Companies Use IPOs?

IPOs are often used by start-ups and emerging companies to raise capital for growth and expansion, but they can also be used by mature companies to raise capital for other purposes such as paying off debt, or to allow existing shareholders to cash out some of their investment.

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How Does ISP Support Companies During IPOs?

As a liquidity provider, ISP guarantees that new shares are easily accessible on the market at fair prices. This attracts investors and supports companies in raising the maximum amount of capital possible. Additionally, as a liquidity provider, ISP prevents wide bid–ask spreads and thus helps its clients avoid market disruptions.

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Our Partnership with BX Swiss

ISP is a trading member and Paying Agent at BX Swiss, a Swiss-regulated stock exchange under the supervision of FINMA. Established in 1884, BX Swiss offers the possibility to be listed on a fast-growing marketplace for Stocks, ETPs, Bonds and AMCs.

What Are Your Benefits?

Access to a large and diverse investor base: BX Swiss is one of the largest and most reputable stock exchanges in Switzerland, which means that companies can access a large and diverse pool of potential investors.

Strong regulatory framework: Switzerland has a strong regulatory framework, designed to protect investors and ensure the stability of the financial system. This provides additional assurance to investors.

Favourable fiscal environment: Switzerland has a favourable fiscal environment for companies and investors, which can make it an attractive destination for listing shares.

Strong reputation: Switzerland is known for its stability and reliability, which can be beneficial for companies looking to raise capital and attract investors.

Liquidity: BX Swiss provides good liquidity to companies, allowing them to raise capital, attract investors and trade shares more easily with less volatility.

Why Work with ISP?
Why Work with ISP?

30 Years of Experience

ISP is a highly experienced and professional brokerage firm that offers a wide range of services to its clients. The Trading & Execution team at ISP is composed of experienced traders who provide liquidity from opening to market close, which can be especially important during periods of high volatility or market instability.

01

Customised Tailored Offering

Our service can be tailor-made to any clients’ needs. Order book depth and liquidity levels can be agreed upon client request. ISP continuously monitors all transactions to ensure clients' trades are executed efficiently.

02

Competitive Pricing

We offer liquidity provision at competitive prices, helping clients to save costs and improve their trading efficiency.

03

Brokerage and Custody Solution

ISP offers custody solutions, providing clients with a secure and convenient place to hold all their assets. ISP is a partner of SIX SIS AG, Switzerland’s most trusted and experienced custodian for tradeable assets and with a renowned French A-1/P-1 bank institute for all cash-related services.

04

Member of BX

As a member of the BX exchange, ISP allows its clients to access a broad range of liquidity and trading opportunities available on the exchange.

05

Compliance and Duty

ISP places a strong emphasis on compliance and duty. ISP Securities is fully compliant with all regulatory requirements and our clients can trust that their assets are in good hands.

06

Reporting

ISP provides comprehensive reporting on trading activities for clients to get a detailed overview of their trading activities. This helps clients to better understand their performance, identify areas for improvement and make better-informed trading decisions.

07

Our Strength. Our People.

Our team consists of experts in the field of securitisation. We take a dynamic, dedicated and tailored approach that enables us to realise our clients’ goals and visions. With our can-do attitude, we strive to serve our clients with the highest level of professionalism in the most efficient way.