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12 September 2016

Financial Times: Swiss stock exchange turns to Germany for EU access

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SIX among the first financial firms to make concrete post-Brexit plans on ‘equivalence’, after concluding that its relationship with London would not suffice after the UK quits EU.

SIX’s chief executive confirmed the talks with Germany’s BaFin to the Financial Times, making his company an early mover. Most financial services firms are still weighing their options after the June referendum result.

Since Switzerland is outside the single market, Zurich-based SIX has traditionally relied on its recognition by the UK’s Financial Conduct Authority to achieve the regulatory “equivalence” that enables it to trade across EU markets. Some 80 per cent of SIX’s clearing business comes from outside Switzerland.

“Post-Brexit, you’ll need equivalence with the UK and the EU [separately],” said Urs Rüegsegger, group chief executive. “London isn’t enough any more, you need a country that is in the EU.” [...]

Mr Rüegsegger said it was hard to know how long talks would take. “It’s pretty unclear what’s going to happen when the UK leaves … that’s a precondition to knowing how the position evolves,” he added.

The UK has given mixed messages about access to the EU’s single market post-Brexit. David Davis, Brexit secretary, said last week it was ”very improbable” it could be kept. Prime Minister Theresa May, however, said his comments were “not government policy”.

Full article on Financial Times (subscription required)


© Financial Times

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