From CNBC February 9:
- The European Union allowed the recognized equivalence of the Swiss stock exchange to lapse in 2019 after a dispute over a host of bilateral treaties governing Switzerland’s political relationship with the bloc.
- With the U.K. having left the EU’s orbit on Jan. 1, a renewed equivalence arrangement between the U.K. and Switzerland saw Swiss shares resume trading on London exchanges last week.
The dispute between Switzerland and the EU which saw Swiss stocks delisted from European exchanges helped the country’s market weather the pandemic, SIX Swiss Exchange Head Christian Reuss has told CNBC.
The European Union allowed the recognized equivalence of the Swiss stock exchange to lapse in 2019 after a dispute over a host of bilateral treaties governing Switzerland’s political relationship with the bloc.
The EU grants “equivalence” to countries whose stock markets are deemed equivalent to those of its member states, and the end of the agreement meant EU shares could no longer be traded on Swiss exchanges.
European traders were subsequently banned from trading stock in hundreds of Swiss companies, a move which saw the Swiss stock exchange obtain “almost 100%” market share in equity trading, according to Reuss. In 2019, the SIX Swiss Exchange overtook Euronext Paris to become the third-largest primary exchange on the continent, behind only the London Stock Exchange and Germany’s Deutsche Boerse.
“That of course had some benefits to the market. When all the liquidity is pooled in one place, spreads remain stable, the available liquidity of course went up, and if everything is pooled there, you can trade bigger tickets,” Reuss said....
....MUCH MORE
* January 27
A Heads-Up To The Gamestop, AMC etc. Crowd: They Are Going to Change The Rules On You
Market structure is the most important and least understood factor in the entire short-squeeze game.And if you don't understand every dependent clause and every comma versus period in the rules and regs you are in for a shock.....
