basis since the beginning of the financial crisis. this trend has not been reversed, as we can see from chart 6. activity on the money market has shifted towards the secured segment – in switzerland towards the repo market ( shown in blue ). following the substantial injection of liquidity in the wake of the snb ’ s interventions, activity in this segment has also declined. however, the sizeable liquidity surplus has not reduced volume to zero. in fact, the introduction of negative interest on sight deposit accounts at the snb has prompted banks to arbitrage their exempted amounts. in addition, banks have continued to trade in repos, in order to exchange the corresponding collateral. collateral management tends to gain in importance in response to ever - stricter regulation. insurance companies are likewise active in the market, for liquidity management purposes. in this changing context, the money market has performed its role as a monetary policy transmission channel to the fullest extent. following the introduction of a – 0. 75 % negative interest rate on sight deposit accounts at the snb at the beginning of 2015, the various money market interest rates rapidly moved into negative territory, as chart 7 shows. the decline also spread to yields on bond and credit markets. to ensure the smooth functioning of the capital market and the effective transmission of monetary policy regardless of the circumstances, the quality of the money market infrastructure plays a key role. the existing money market infrastructure managed by six has many advantages : for instance, it has a wide range of participants, including the snb, who make up a homogeneous market and interact on a shared platform. moreover, that infrastructure is highly automated and standardised. it is in the process of being upgraded, to better respond to the changing needs of participants. a new repo trading platform, co : re, was launched in 2016. moreover, a new triparty agent is being set up which will offer market participants a wide range of services and will enable a more efficient management of collateral through closer integration with pure trading activities. page 7 / 9 finally, a resilient and modern repo market infrastructure is essential to allow the snb to deploy its entire monetary policy toolkit effectively and at any time. indeed, the snb uses the same six platform as private participants to implement its monetary policy, by auctioning / exchanging repos or reverse repos or even issuing snb bills. as you will recall, the latter were issued at the beginning of the crisis. they proved to

crisis, inflation in switzerland remained subdued due to low oil prices and strong appreciation of the chf 08. 11. 2018 ten years after the crisis : evolving markets and the challenges for the snb | andrea m. maechler and thomas moser | © swiss national bank the snb monitors the microstructure of the market in real time using high - frequency data eurchf exchange rate and order book on 8 february 2018 high high tick time 08. 11. 2018 ten years after the crisis : evolving markets and the challenges for the snb | andrea m. maechler and thomas moser | © swiss national bank source : snb. low 1. 160 1. 158 1. 158 1. 156 1. 156 1. 154 1. 154 1. 150 1. 148 1. 152 1. 150 1. 148 1. 146 1. 144 1. 144 12 : 00 15 : 00 18 : 00 1. 142 09 : 00 12 : 00 15 : 00 eurchf ( rhs ) 8 february 2018 : turnover ( left chart ) ; bid - ask spread ( right chart ) since february 2017 : turnover ( left chart ) ; bid - ask spread ( right chart ) 08. 11. 2018 ten years after the crisis : evolving markets and the challenges for the snb | andrea m. maechler and thomas moser | © swiss national bank 18 : 00 source : snb. low low 1. 146 1. 142 09 : 00 eurchf 1. 152 turnover high 1. 160 bid - ask spread high unusually high trading activity for the eurchf pair between 17 : 00 and 17 : 30, but robust liquidity conditions sources : bloomberg, jp morgan, snb. since the beginning of the year, various risk - off phases have led to an appreciation of the chf 08. 11. 2018 ten years after the crisis : evolving markets and the challenges for the snb | andrea m. maechler and thomas moser | © swiss national bank sources : bloomberg, snb. options market reflects the fragility on the foreign exchange market 08. 11. 2018 ten years after the crisis : evolving markets and the challenges for the snb | andrea m. maechler and thomas moser | © swiss national bank sources : sic, ssx, snb. unsecured transactions have practically disappeared in favour of secured transactions 08. 11. 2018 ten years after the crisis : evolving markets and the challenges for the s