Thursday , July 7 2022

Stock market: there are no Swiss stock operations in commercial places in the EU. These are the message effects


Since Switzerland fought against the signing of the framework agreement due to domestic resistance, the EU has not renewed the recognition of the Swiss regulation of the Swiss franc, which means that EU merchants can only negotiate SIX in Zurich. In return, Switzerland has banned full trade of Swiss securities at EU trading sites, such as the London Stock Exchange or the Deutsche Brse. Affected by this there are, for example, documents on Swiss heavyweights, such as Roche, Novartis or Nestl. How does this commercial ban affect?

A third of the Swiss actions were negotiated in the EU

About one-third of Swiss swap operations have so far been developed outside of the Alpine Republic in European shopping centers. With the ban on the trading of Swiss securities in the EU, these securities can only be traded in Zurich, which could cause SIX to increase its long-term trading volume.

At the same time, however, there are doubts that, if there is still an agreement on the market agreement, Switzerland could be less attractive to investors. If the shares are not traded in the EU, Swiss companies may be less attractive, which could adversely affect their market valuation and could make it harder for Swiss companies to obtain money from investors in the OPIs.

Retail investors are the most affected

The Commission of the European Union assumes that it could lead to "some interruption" and the fragmentation of the market and, in the long run, at higher costs. As Bloomberg writes, the European Asset Management and Asset Management Association also worries that up to 5,000 ETFs based in the EU can face higher liquidity and cost problems.

The biggest impact, however, will probably be in private investors who only invest in a small style. According to Brse Online, at least Andreas Lipkow, an expert in comdirect markets, believes in that. For those who engage in Swiss indirect actions, they must pay in the future, perhaps, higher settlement costs. Whoever contracts the values ​​of the GIS, which can be "partially horrible costs," writes the Brsenportal.

Will Britain be the same after Brexit?

By the way, not all Swiss values ​​are affected by the commercial prohibition of European commercial sites. Stock exchanges that are listed not only in Switzerland, but also elsewhere in the EU, can still be traded on European stock markets. These include, for example, the ABB energy group, which is also registered in Stockholm or the manufacturer of construction materials Lafarge Holcim, which is also priced in Paris.

The effects of restricted trade between the EU and Switzerland should focus on the United Kingdom in particular. Because, with regard to Brexit, the same destination could be late or threatening the United Kingdom.


Image sources: Alexander Chaikin /, Fedor Selivanov /

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