SIX Swiss Gains 1-Year Status as Equivalent Third-Country Trading Venue

Financial venues and exchanges all over Europe are taking steps to help strengthen their compliance ahead of the upcoming implementation of MiFID II in nearly two weeks. This includes SIX Swiss Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, which will now effectively allow European securities traders the ability to access the Swiss market once MiFID II comes into effect.

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The decision came from the EU Commission today, which allowed the SIX Swiss Exchange to obtain temporary status as an equivalent third-country trading venue. In particular, Article 23 MiFIR requires that European investment firms trade shares on a trading venue within the EU or a third-country trading venue assessed as equivalent.

Consequently, the latest decision will enable SIX Swiss to maintain an equivalence with the EU for a period of one year. The move is important for the venue, given that European traders will seamlessly be able to continue their trading activities without any disruption on accounts of the new MiFID II regime coming into effect.

Indeed, MiFID II has loomed over the financial services industry in Europe for over a year, with its deadline necessitating new compliance and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term efforts. In terms of SIX Swiss, the decision from the Commission helps shore up its obligations with the EU. MiFID II requirements apply to all shares admitted to trading in the EU, which in essence affects the majority of Swiss equities traded on SIX.

However, recognizing this as an important consideration, SIX Swiss Exchange in recent months had already moved to the necessary steps, which resulted in today’s decision to obtain equivalency. It should be noted that as of now the equivalency is only extended for a period of one year, following the EU Commission’s decision.

It is still unclear what will happen beyond this yearly period – the EU Commission will have to again decide if SIX Swiss’ equivalency will be maintained or additional steps taken. SIX Swiss is hopeful of a more definitive outcome and long-term solution.