Switzerland and EU Spat Affecting Stock Markets
01.07.2019, 07:16

Switzerland and EU Spat Affecting Stock Markets

Last night the European Union (EU) threatened to terminate its preferential treatment of Swiss stock exchanges as of midnight, according to Deutsche Welle. Therefore, as of today, the EU will no longer deem Swiss stock-exchange regulations as having the same privileges as their own.

As this is now the case, Switzerland has put together a protective plan which will not enable EU exchanges to trade in certain Swiss shares, in order to safeguard liquidity.

According to Bloomberg, the buying and selling of most stocks probably won’t be an issue but ‘dual listings in EU markets – such as engineering company ABB Ltd. Or cement maker LafargeHolcim Ltd. – could prove tricky.’ Expanding on how this could affect investors further, the media outlet said that even if all trades are successfully directed to Switzerland, investors could suffer from reduced competition among marketplaces.

This change in Swiss stock-exchange regulations was caused by a dispute between the capital cities Bern and Brussels over an umbrella agreement to restructure political ties. The outcome is also an example of what Britain could face after Brexit. “This also sends a very clear message to the UK regarding equivalence in the post Brexit period – which so far has been viewed by the Brexiteers and the current UK government as a given,” said Scott Evans, a researcher at London Business School.

Disclaimer:

Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.


Quotes
Symbol Bid Ask Time
AUDUSD
EURUSD
GBPUSD
NZDUSD
USDCAD
USDCHF
USDJPY
XAGEUR
XAGUSD
XAUUSD

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location