8.10 Stock Market Equivalence

The Federal Council introduced a recognition obligation for foreign trading venues. The ordinance entered into force on 1 July 2019. The aim is to protect the Swiss financial center and its stock exchanges and to ensure that European market participants continue to have access to the most liquid and deepest order book of the securities listed on SIX and the efficient trading of these securities.

Since 2019, the European Commission (EC) no longer grants Switzerland equivalence as a recognized third-country trading venue. In return, the Federal Council implemented an ordinance aiming at protecting and safeguarding the functioning of the Swiss Stock Exchange infrastructures.

On the basis of this ordinance, on 1 January 2019, a recognition obligation was introduced for foreign trading venues that trade equity securities (e.g. shares) issued by companies with registered offices in Switzerland where such equity securities are listed on a Swiss stock exchange or are traded at a Swiss trading venue (»Swiss shares»). According to the Federal Council’s ordinance, shares of companies that have a primary listing on SIX but do not have their registered office in Switzerland are exempt from this measure.

The intended consequence of the ordinance is that EU securities firms should continue to have access to the Swiss market and that they can continue to trade Swiss equities in their home market.

As a result of Brexit, at the beginning of 2021 the United Kingdom and, in turn, FINMA recognised the respective trading venues and the restrictions on both sides were lifted. In June 2022, the Federal Council decided to transpose the protective measures into ordinary law.

Further information on this topic is available at the microsite of SIX: ➔ six-group.com/en/products-services/the-swiss-stock-exchange/site/exchange-equivalence.html