Based on the new “ recognition regime”, FINMA will only grant recognition if the jurisdiction, in which the foreign trading venue is located, permits investment firms in that jurisdiction to trade in Swiss shares in Switzerland without restriction. If this condition is not met, a foreign trading venue will not be granted recognition by FINMA; consequently, these venues will not be allowed to offer trading in Swiss shares, effective from 1 January 2019.

The intended consequence of the measure is that EU investment firms continue to have access to the Swiss domestic market and are able to trade Swiss equities in their home market, because the shares are no longer subject to the trading mandate (Share Trading Obligation) in MIFIR (Art. 23). However, SIX regrets that it was necessary to implement the measure at all and that to date the decision of the equivalence recognition has not been granted yet by the EU Commission.

Romeo Lacher, Chairman of the Board of Directors, SIX, emphasizes: "Switzerland is the home of some of the largest and most actively traded companies in Europe. These securities are listed and traded on SIX which is the deepest, most liquid and most cost effective market for these shares. The international connectivity of the Swiss financial center is a fundamental prerequisite for these conditions – for both, national and European investors. This is why the achievement of equivalence continues to be our highest priority, such that legal certainty is achieved and transparent and effective open markets can continue to serve the requirements of investors.”




Further information on the decision of the Federal Council:

Press release of the Federal Department of Finance



Any questions?

Please do not hesitate to contact Julian Chan.

About SIX
SIX provides and operates stable and efficient infrastructure for the Swiss and Spanish financial centers, thus ensuring access to the capital markets and the flow of information and money between financial market players. As a global provider of financial information, SIX delivers high-quality reference, pricing, corporate actions, and ESG data and provides regulatory services and indices to clients around the world. The company is owned by its users (more than 120 banks) with a workforce of 4,160 employees and a presence in 19 countries.