In trade-weighted terms, the Swiss franc is currently almost unchanged from January. Structural changes in the foreign exchange and money markets As you will know, the Swiss National Bank (SNB) implements its monetary policy via the money and foreign exchange markets. Consequently, structural changes in these markets are particularly important to us. I would now like to talk briefly about the major changes and their significance for our work. On the foreign exchange market, we are seeing a substantial decline in turnover in the primary interbank market. Meanwhile, the size of the market as a whole has decreased only slightly. This means that the interbank market has lost market share. The primary interbank market covers trading via the electronic communication networks. Between 2010 and 2013, turnover through these networks fell by almost 40% overall. In chart 3 you can see an example of this decline in turnover for the EURCHF and USDCHF currency pairs. In 2013, this was already below the previous levels, and a further decline in turnover is becoming evident for the current year. This development is attributable, in essence, to three factors. First, there is an increasing tendency for large merchant banks to use internal clearing for customer transactions. This means that the need for hedging transactions on the interbank market has declined. Second, to an increasing extent, merchant banks are offering liquidity via other electronic distribution channels such as their own trading platforms or multibank platforms. This enables them to attract more business and to benefit from the additional internalisation.

Third, smaller banks are increasingly becoming direct customers of larger banks, which means that less trading is taking place on the interbank market. Nevertheless, because the interbank market allows for price determination and therefore provides reference prices, it performs a key function for the foreign exchange market. Consequently, a well-functioning interbank market is also very important for the SNB. Our analyses show that the decline in turnover has not yet resulted in a deterioration in market quality. Despite the fall in turnover, transaction costs are low and the interbank market is still working properly. However, we are keeping a close eye on developments in the structure and quality of the market. The focus of monetary policy implementation is currently the foreign exchange market. However, a well-functioning money market is no less important to us. Structural changes have also taken place in this market. On 2 May 2014, SIX Group Ltd commenced operations with a new trading platform for the Swiss money market. Since then, the SNB has conducted all open market operations, all transactions for its standing facilities as well as the auctions for the Swiss Confederation through this platform. This also means that banks can only obtain funds under the liquidity-shortage financing facility through this platform. The successful launch of the new platform can be measured by the fact that 140 foreign and domestic participants already have access, and additional participants have applied to join. With the introduction of the new platform, collateral eligible for SNB repos has been combined in new baskets.