Switzerland's Federal Council warned that trading venues in the European Union could be barred from dealing in Swiss shares if the European Commission fails to extend stock market equivalence arrangements beyond the end of 2018.
The Federal Council adopted a contingency measure that would require foreign trading venues to seek formal recognition to trade Swiss shares in case the commission does not extend Switzerland's stock market equivalence in time.
"In that case, EU trading venues would not receive this recognition," the Federal Council said. "It will bring this into force only if necessary."
The EU in December 2017 granted Switzerland stock market equivalence for only one year. The Federal Council said uncertainty for Swiss stock exchanges and EU market participants would continue to increase, as the EU's reassessment of the equivalence arrangements is not expected until the fall or possibly even the end of 2018.
