On 17 December 2018, the European Commission issued a press release stating that it is proposing to extend for six months its decision to recognise trading venues in Switzerland as eligible for compliance with the trading obligation for shares set out in MiFID II and MiFIR. The Commission is currently consulting Member States on the draft decision so that it can be adopted and take effect before the current equivalence expires at the end of the year. The decision would apply as of 1 January 2019 and expire on 30 June 2019.
Valdis Dombrovskis, Vice President for Financial Stability, Financial Services and Capital Markets Union, said: “A temporary extension of equivalence should provide time to Switzerland to finalise its internal consultation on the Institutional Framework Agreement. It will also ensure continuity for portfolio managers and brokers active in Swiss equities. We want that European firms can continue trading in Swiss equities both in the EU and on the Swiss exchanges. Open and competitive stock markets are vital for a healthy economy and to provide reliable income sources for investors in equities.”