On Thursday the foreign Minister, Ignazio Cassis (58, FDP) officially confirmed what was already obvious: Brussels is the up to 30. June current recognition of the equivalence of our exchanges with those of the EU (exchange-equivalence) not to extend it. The Federal Council sets the last summer for this case announced the emergency plan in force. Only: What does it all mean? VIEW explained.
What is actually this exchange equivalence?
The EU introduced after the financial crisis, stricter rules for the financial sector – including for the trade with securities, such as shares. Because financial markets are not isolated, it has also adopted a set of rules for non-members, the so-called third countries such as Switzerland. These rules are intended to ensure that shares of EU firms only in those Non-EU exchanges that meet the Brussels criteria. This is the case, explains the EU, the foreign exchange equivalent (equivalent). In any case, most of the time. Because Switzerland meets the criteria.
And why not give us, the EU, the equivalence certificate?
in Short: don’t punish us For that, the framework agreement forward. Because the EU wants the agreement to quickly sign it. It would leave the Federal Council, for example, already provisionally signed, and the final spurt to the final signature, the beginning would have given us Brussels, at least a temporary recognition. However, the Declaration of the Federal Council, that he wants the agreement to sign a deal, but still a “need for clarification” did, is not enough for the EU. To keep the pressure up, not the extended equivalence now.
What the Swiss stock exchange not receive does it mean when the recognition?
Without recognition are no longer allowed to buy EU banks or securities dealers shares, which are traded on European stock exchanges, the Swiss stock exchange, or sell. For the banks, this is not a Problem – you can switch to other trading venues, such as London, Paris or New York. One Problem, however, the Swiss stock exchanges: For EU traders the Swiss stock exchanges the major portion of their sales. No recognition – no business, means the simple equation.
this Will hit Switzerland hard?
you have to wait and see. On the Swiss stock exchange would threaten severe losses because many shares are expected to be in Zurich trading. But: The Federal Council has developed a Plan B – and he is convinced that this works.
Like this is Plan B supposed to work?
now, It should look very old Testament according to the principle of “an eye for an eye, a tooth for a Tooth”. Short, Switzerland has decided that the shares of companies in Switzerland, your “stock seat” – are listed on the SIX Swiss exchange – only countries may be traded, which accept, in turn, the Swiss stock exchange. This means that as Long as the EU denied recognition, should the shares of companies with Swiss “stock exchange seat” not in London, Paris and Frankfurt traded. Two notable exceptions are: The Stockholm stock exchange is expected to continue to trade with ABB shares, because the papers of the industry are listed in the group, for historical reasons, there, too. And Lafarge-Holcim shares should be traded for the same reason, still in Paris. In addition – and this is much more interesting – the Swiss stock market, the recognition of the EU with a Plan B. The recognition includes not only trading stocks that are also traded on an EU stock exchange. And that would be the case. This means: EU stock traders are likely to yet again act on the Swiss stock exchange. With the move of Bern sets of Brussels, threat checkmate.
And the EU?
It goes like this. Swiss equities are traded to about 70 percent at the SIX and not to mention, only about 30 per cent in the Rest of the world – from Europe to. Shares of Roche, Nestlé and co. make up only about three percent of the turnover of the EU stock exchanges.
What if commercial courts against the Plan B failed?
In the event of breaches threaten the senior management and Board members of the offending trade courts, fines or even imprisonment of up to three years. That it ever comes to it, is unlikely. Because punished the heads of EU stock exchanges would have to be Yes, which is why the violation of the authorities of the EU States would have to follow.
How to respond to the exchanges?
The EU trade courses have been discontinued, as of Monday, no Swiss shares will allow. And the SIX welcomes the Plan B as well as of the Swiss Association of holdings and the bankers Association. Even if all would, of course, prefer the equivalent.
the listed company respond?
It is not inconceivable that some of the companies listed in Switzerland on the stock exchange, are relocating your home, commercial place abroad. This has, for example, the decision of the Biotech company Newron. But the SIX also recorded successes: for example, the international packaging manufacturer aluflex pack with seat in Reinach AG went on Friday to the stock exchange in Zurich. “This shows that the Swiss stock exchange for international companies attractive and that, regardless of their Size and industry,” said SIX-CEO Jos Dijsselhof.
all this Will lead to an escalation?
Also, you have to wait. If the Plan B of the Federal Council works as hoped, can temporarily live both sides of it. Differently it looks, if either Brussels or Bern got on the loser’s road – in both cases, the pressure on the Federal Council, is expected to increase – either from the EU or the Swiss economy.