The European Commission will extend its equivalence deal with Swiss share trading venues for six months, it confirmed today, allowing EU banks to access Swiss stock exchanges until June.
It will ensure that business and markets will be able to operate smoothly and without any disruptions after 31 December when the current deal expires, the commission said.
Brussels had warned it would only extend the deal if Switzerland backed a new agreement on its relations with the EU, however the Swiss postponed the decision and the commission has not followed through with its threat.
Valdis Dombrovskis, vice president for financial stability, financial services and capital markets union, said: “A temporary extension of equivalence should provide time to Switzerland to finalise its internal consultation on the Institutional Framework Agreement.
“It will also ensure continuity for portfolio managers and brokers active in Swiss equities.
“We want that European firms can continue trading in Swiss equities both in the EU and on the Swiss exchanges.
“Open and competitive stock markets are vital for a healthy economy and to provide reliable income sources for investors in equities.”
The extension will be passed before the end of the year.