Swiss FM expresses disagreement over EU's 1-year access limit to finance markets

GENEVA, Dec. 19 (Xinhua) -- Swiss Foreign Minister Ignazio Cassis on Tuesday expressed disagreement with the European Union over the way it is expected to recognize its stock exchange compared to other international markets.

According to Swiss media, the European Union has overhauled its markets in financial instruments directive, which comes into effect on Jan. 3. The financial equivalence mechanism, which allows for cross-border trading on equal terms for Switzerland, was reportedly approved by EU countries but with a conditional limit of one year.

A lack of so-called "equivalence" would inhibit EU investors in Swiss equities and Swiss stock exchanges, observers note.

If nothing changes, the implication could be that the Swiss stock exchange would lose its equivalence with its European counterpart on Dec. 31, 2018, Swiss media reported.

On Tuesday, Cassis said a conditional one-year limit should not be placed on the financial equivalence of Swiss and European stock exchanges.

"Switzerland's position is clear -- it expects the European Union to recognize financial equivalence... by Jan. 3 at the latest," Cassis said.

He told his French counterpart Jean-Yves Le Drian that he is "dissatisfied with the progress of this dossier".

The Swiss Federal Council, the national executive body, had rejected a one-year clause during European Commission President Jean-Claude Juncker's visit to Bern on Nov. 23, Cassis added.

"Switzerland expects financial equivalence to be guaranteed the day the Swiss stock exchange opens," said Cassis, "If this is not done or if there are conditions that Switzerland doesn't judge legitimate, the government will take decisions." Enditem