On 1 July 2019, the EU withdrew stock market equivalence for equity securities listed on the Swiss stock exchange. Since then it has not been possible to trade Swiss-listed shares in the EU.
The loss of EU financial market equivalence occurred while Switzerland was haggling with Brussels over a framework agreement aimed at replacing Switzerland’s patchwork of bilateral agreements with the EU, which cover matter such as trade and migration.
On 1 July 2019, the EU included the UK, preventing the trade of Swiss shares in London. However, since then, the UK has officially left the EU, opening the way for bilateral agreements on financial services between the two nations.
Swiss minister of finance Ueli Maurer and his British counterpart Rishi Sunak have been working on bilateral agreements for some time. In December last year Switzerland and the UK signed an agreement on mobility of service providers.
On 3 February 2021, FINMA, Switzerland’s financial regulator, completed the final step required to allow Swiss shares to trade in London.
The deal should improve share trading volumes in the UK, however it will not fill the estimated €6 billion daily equity trading hole left in London’s share trading after its exit from the EU.
The UK financial services sector, which makes up around 7% of the nation’s GDP, was largely forgotten in the Brexit negotiations, effectively left with no deal. Places such as the US and Australia now have better access to EU financial markets than the UK.
Finma press release (in English)