Swiss Stocks Rise at Open on Day One Without EU Recognition
Swiss Stocks Rise at Open on Day One Without EU Recognition
(Bloomberg) -- Swiss stocks opened higher on Monday on the first day of trading after the market lost recognition under European Union rules, tracking a rally in global equity markets amid easing worries over trade tensions.
The benchmark SMI index, which features European heavyweights like Nestle SA, Novartis AG and Roche Holding AG, was 1% higher at 09:03 am in Zurich.
Special provisions are in force disallowing trading of Swiss shares in the EU after Switzerland’s market lost equivalence under the EU’s MiFID II regime, a fallout from a dispute between Bern and Brussels over a political treaty.
Not complying with the new rules on trading in Switzerland is a criminal offense, and U.K.-based trading venues run by companies including Cboe Global Markets Inc. and London Stock Exchange Group Plc, where most of the EU trading of Swiss shares takes place, have already told clients that they will exclude securities from Swiss issuers.
--With assistance from Namitha Jagadeesh.
To contact the reporter on this story: Catherine Bosley in Zurich at cbosley1@bloomberg.net
To contact the editors responsible for this story: Jan Dahinten at jdahinten@bloomberg.net, Blaise Robinson
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