Federal Council to remove EU from stock exchange protection list as of 1 May 2025

Press releases, 29.01.2025

During its meeting on 29 January 2025, the Federal Council decided to remove the European Union (EU) from the list of jurisdictions affected by the measure to protect the Swiss stock exchange infrastructure (protective measure) with effect from 1 May 2025. The Federal Council had activated the protective measure in 2019 to temporarily protect the Swiss stock exchange infrastructure in response to the non-recognition by the EU of the equivalence 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.

In 2019, in response to the non-recognition by the EU of the equivalence of Switzerland's stock exchange regulations, Switzerland introduced a temporary measure to protect the Swiss stock exchange infrastructure, thereby ensuring that EU securities firms could continue to trade equities of Swiss companies on Swiss trading venues.

The EU amended the relevant legal basis in spring 2024, and thus lifted the restrictions on EU securities firms trading in Swiss equities. As a result, trading in Swiss equities on Swiss stock exchanges is no longer adversely affected by EU law, and the criterion of "significant adverse effect" on trading in Swiss equity securities provided for by Swiss law could thus be reassessed.

An overall assessment showed that the Swiss protective measure with respect to the EU is now no longer necessary and could have repercussions for Swiss companies in some cases (e.g. in the context of mergers with EU companies). The Federal Council therefore decided to remove the EU from the list of jurisdictions affected by the protective measure, with effect from 1 May 2025.

In the context of the talks with the European Commission on the package to stabilise and further develop bilateral relations between Switzerland and the EU, it was also possible to resume the regulatory dialogue with the EU on financial markets in summer 2024. Due to the great importance of the cross-border retail client business for the Swiss financial centre, Switzerland will continue to seek recognition of equivalence and improved EU market access for Swiss financial service providers in that dialogue.


Address for enquiries:

Communications, State Secretariat for International Finance SIF
Tel. +41 58 462 46 16, info@sif.admin.ch


Publisher:

The Federal Council
Federal Department of Finance