Time runs out on Swiss equivalence

Over the weekend, the stock market equivalence granted to Switzerland by the European Commission expired. The limited-period equivalence, which was given in December 2017 and extended to 30 June 2019, has run out.
Despite Swiss beliefs that all the conditions are still met for recognition by the EU, there was no let-up in the EU’s resolve to see this privilege revoked. The financial community’s hopes last week of an eleventh-hour extension to maintain the status quo were dashed. Nothing was granted nor promised.

As a result, the Swiss government’s Federal Council activated their plan to protect Swiss stock exchange infrastructure. Under these measures, foreign venues are required to have authorization to trade Swiss shares. Without it, over 300 Swiss shares have been removed from trading on EU venues from 01 July. These Swiss stocks are no longer in scope of the MiFIR trading obligation, and EU trading firms can trade directly in Switzerland or via brokers with access.
The impact on market structure will no doubt play out in the coming days. How markets respond is likely to set a precedent as the clock runs down towards Brexit, whatever form it might eventually take.

Leave A Comment

Copyright © 2019 Fidessa Group Holdings Limited. All rights reserved.

The information contained within this website is provided for informational purposes only. Fidessa will use reasonable care to ensure that information is accurate at the time it is made available, and for the duration that it remains on the site. The information may be changed by Fidessa at any time without notice. We also reserve the right to close the website at any time. No representation or warranty, expressed or implied, is given on behalf of Fidessa or any of its respective directors, employees, agents, or advisers as to the accuracy or completeness of the information or opinions contained herein or its suitability for any purpose and, save in the case of fraud, all liability for direct, indirect, special, consequential or other loss or damages of whatever kind that may arise from use of the website is hereby excluded to the fullest extent permitted by law. Any decisions you make based on the information in this website are your sole responsibility and information on the website should not be relied upon in connection with any investment decision.

The copyright of this website belongs to Fidessa. All other intellectual property rights are reserved.

Reproduction or redistribution of this information is prohibited except with written permission from Fidessa.