Switzerland to repeal stock exchange protections against EU (updated)

Bureau Veritas SA

29/01/2025 11:30

(Adds details, context throughout, quote)
       ZURICH, Jan 29 (Reuters) - The Swiss government said on
Wednesday that it would from May 1 remove the European Union
from a list of jurisdictions affected by protective measures for
the Swiss stock exchange, ending a block on the trading of Swiss
shares on other bourses.
    Switzerland introduced the measures in 2019 when the EU
withdrew its recognition of equivalence for the Swiss exchange
amid a row over bilateral trade talks.
        That blocked trading of Swiss shares on EU-based
exchanges so that it would have to take place on Swiss bourses.
  
    "As the EU has since revised the corresponding legal basis,
the Swiss protective measure with respect to the EU is now no
longer necessary and is to be deactivated for the benefit of
Swiss companies," the Swiss government said in a statement.
        "As a result, trading in Swiss equities on Swiss stock
exchanges is no longer adversely affected by EU law," it added.
  
        The protective measures recently came under renewed
scrutiny in Switzerland when it emerged that they could 
    complicate
     a potential $30 billion merger between Swiss firm SGS and
French rival Bureau Veritas that was then under consideration.
  
        SGS later 
    abandoned
     the merger talks, though a person familiar with the matter
said the stock market protections had not played a significant
part in that decision.
  

 (Writing by Rachel More and Dave Graham, Editing by Miranda
Murray)
 ((rachel.more@thomsonreuters.com;))