Switzerland is a well-developed investment destination and qualifies for an unlimited extension of stock market equivalence along with a host of other third countries. The Federal Council which has insights on this issue have confidence that such a development would be widely beneficial for stock market players in Switzerland.Swiss shares trade: Foreign venues need recognition from FINMA
Swiss shares trade: Foreign venues need recognition from FINMA
Foreign trading venues that admit Swiss shares to trading must be recognized by the Swiss Financial Market Supervisory Authority (FINMA), starting January 1st 2019. The Federal Department of Finance (FDF) has noted the European Commission's decision of 20 December 2018 to extend Switzerland's stock market equivalence until the end of June 2019.
Thus, the FDF Passed the Federal Council Ordinance of 30 November 2018 on the Recognition of Foreign Trading Venues. The ordinance has created the obligation to allow EU trading venues to obtain the new FINMA recognition for the time being as well.
The measure adopted on November 30th 2018 is meant to protect Swiss stock exchange infrastructure, introducing a recognition obligation effective from 1 January 2019 for foreign trading venues that admit Swiss shares to trading.
Affected trading venues
The FDF revised the list of jurisdictions, thus EU trading venues now also fulfill the requirements for the new Swiss recognition.
The affected EU trading venues are recognized by the FINMA, starting January 1st 2019 and they don’t have to submit an application for admission. As this is an EU temporary extension of stock market equivalence, the ordinance practically has no effect for the moment, as the ordinance will stay in force.