Switzerland’s FDF enables recognition of EU trading venues
The Federal Department of Finance has created the prerequisite to allow EU trading venues to obtain the new FINMA recognition for the time being.
The Swiss Federal Department of Finance (FDF) has created the prerequisite to allow EU trading venues to obtain the new FINMA recognition for the time being. The move was announced today.
The Swiss FDF referred the European Commission’s decision from earlier this week to extend Switzerland’s stock market equivalence until the end of June 2019. The FDF has enabled the recognition of EU trading venues based on the Federal Council Ordinance of November 30, 2018 on the Recognition of Foreign Trading Venues.
The Federal Council adopted a measure to protect the Swiss stock exchange infrastructure during its meeting on November 30, 2018. The ordinance that came into force on the same day introduced a recognition obligation effective from January 1, 2019 for foreign trading venues that admit Swiss shares to trading.
Due to the European Commission’s decision on the temporary extension of stock market equivalence, the FDF adapted the list of jurisdictions in accordance with Article 3 paragraph 3 of the ordinance in line with its powers, with the result that EU trading venues now also fulfil the requirements for the new Swiss recognition. This way, for the time being, FINMA will be able to recognise the affected EU trading venues too from January 1, 2019.
Trading venues do not have to submit an application for this. Although the ordinance will remain in force, it will have no effect in practice for the time being, i.e. for the duration of the EU’s temporary extension of stock market equivalence.
The Federal Council believes that Switzerland – like other third countries – meets all the requirements for an unlimited extension of stock market equivalence. An unlimited extension remains the best solution for all affected market players in Switzerland and abroad, the FDF says.