Bern (Brussels Morning Newspaper) – The Swiss government decided on January 29, 2025, to exclude the European Union from a list of jurisdictions influenced by measures to shield the Swiss stock exchange infrastructure as of May 1, the Swiss Federal Council said in a statement.
Switzerland triggered the protective action in 2019 to rescue the Swiss stock exchange infrastructure in reaction to the non-recognition by the European Union of the equality of Switzerland’s stock exchange regulations.
As the EU has since revised the corresponding legal basis, the Swiss protective measure with respect to the EU is now no longer necessary and is to be deactivated for the benefit of Swiss companies. Switzerland will continue to seek recognition of equivalence and improved market access for financial service providers in the regulatory dialogue with the EU concerning the financial sector.
the statement said.
Why did Switzerland introduce protective measures in 2019?
In 2019, in reaction to the non-recognition by the European Union of the equivalence of Switzerland’s stock exchange rules, Switzerland raised a temporary measure to safeguard the Swiss stock exchange infrastructure, thereby guaranteeing that EU securities companies could persist in trading equities of Swiss firms on Swiss trading venues.
How has the EU revised its legal stance on Swiss regulations?
The European Union in late 2024 amended its legal framework in order to lift the restrictions on EU securities firms trading in Swiss equities. An amendment that allows EU investment firms to deal in Swiss equities without the implications previously implied on account of the non-equivalence status of Switzerland’s financial regulations is a significant step toward the normalisation of trading relations between the EU and Switzerland.
The removal of these restrictions no longer negatively impacts trading in Swiss equities on Swiss stock exchanges under EU law. As such, the criteria for “significant adverse effect” on trading in Swiss equity securities as required by Swiss law can be reassessed favourably.
