Swiss stock exchange loses EU access

epa05770775 The Swiss flag flies at the Mont Blanc bridge which crosses the Lake Geneva with the famous fountain 'Jet d'Eau' seen in the background on the bank of the lake of Geneva, during a strong wind, in Geneva, Switzerland, 04 February 2017. EPA/SALVATORE DI NOLFI

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The Swiss Market Index rose 1pc in early trading on the first day since EU-based traders lost the right to trade equities in the country as a result of a diplomatic spat.

The Swiss government has banned the trading of Swiss shares by EU-based banks and fund managers in retaliation to the EU’s withdrawal of its equivalence permit, which allowed Swiss traders to freely trade EU-listed equities.

The fallout will be closely watched by the City of London ahead of a possible no-deal Brexit, when the UK could face a similar impasse over market access.

EU-based transactions accounted for about one-third of all trades in Swiss shares. However, EU banks and fund managers will face the possibility of criminal convictions and prison sentences if they trade in Swiss-listed shares.

The dispute stems from a broader disagreement between Switzerland and the EU regarding an overarching agreement to streamline more than 120 bilateral agreements between the Alpine country and the bloc.

 

Via The Daily Telegraph

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