Swiss stock exchange loses EU access
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.