Switzerland: Derivatives

SWITZERLAND

A EUROMONEY SURVEY - MARCH 1996

A UNIQUE MARKET

Today's global financial markets are without frontiers. Reading most financial publications, one would think that doing financial business in London, Tokyo or Zurich is merely engineering and selling generic products to local markets.

In reality, fundamental cultural differences exist in the demand and usage of financial products even amongst neighbouring countries. Switzerland is no exception, and analyzing the market for derivatives products in this country is an interesting exercise in order to understand the future of the derivatives business in general.

Although a small country, Switzerland presents a extremely diversified financial profile:

* Swiss corporates include some of the biggest European multinationals alongside big domestic companies;

* Swiss sovereign entities (confederation, cantons, municipalities) have only recently faced significant borrowing needs and this trend is likely to continue;

* The Swiss financial sector has traditionally been very important and diversified: it combines three giant, universal...