Swiss FDF ponders activating measure to protect Swiss stock exchange infrastructure

Maria Nikolova

In case the stock market equivalence granted by the European Commission is not extended, the FDF will activate the protective measure.

Switzerland’s Federal Department of Finance (FDF) is getting ready to activate a measure to protect Swiss stock exchange infrastructure.

The stock market equivalence, which was granted by the European Commission to Switzerland for a limited period of time, is set to expire at the end of June 2019. In order to create clarity for market participants, today the Federal Department of Finance is notifying that it will activate the measure to protect the Swiss stock exchange infrastructure in the event of non-extension.

The Federal Council adopted a measure to protect the Swiss stock exchange infrastructure on November 30, 2018. The corresponding ordinance provides for a recognition obligation for foreign trading venues that admit Swiss companies’ shares to trading.

In case the stock market equivalence is not extended, the FDF will activate this protective measure in accordance with the ordinance. Specifically, the FDF would adapt the list of jurisdictions referred to in Article 3 paragraph 3 of the corresponding ordinance with effect from July 1, 2019 and include the EU in the list.

Consequently, trading venues in the EU would lose recognition under Article 1 paragraph 3 of the ordinance. Trading venues in the EU would thus be prohibited from offering or facilitating trading in certain shares of Swiss companies from that date.

The FDF explains that activating the protective measure with regard to trading venues in the EU serves solely to protect the functioning of the Swiss stock exchange infrastructure.

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