No sign of fall-out from EU spat, Swiss stock exchange chief says
One month after Brussels scrapped the equivalency that had allowed Swiss stocks to be traded in Europe, the fortunes of the SIX stock exchange are far from dented, its CEO says.
This content was published on
2 minutes
swissinfo.ch/dos
The loss of stock market equivalency on July 1 – a bargaining chip in the protracted political negotiations between Switzerland and the EU – was supposed to be a hardball signal to remind Bern of its reliance on European market access.
But one month after the fact, the figures are not showing signs of strain, says SIX CEO Jos Dijsselhof in an interview published this weekend in the NZZ am Sonntag.
In fact, he says, “July was an excellent month”, and despite the fact that the loss of equivalency remains “unsatisfactory”, trading volumes on the SIX exchange were up 26%.
This tallies with some other reports in the immediate aftermath of the market decoupling, with one economist saying that the EU may have misjudged the move, which “has harmed EU investors more than Swiss”.
Short-term effect?
Of course, the jump in activity was somewhat inevitable. Before July, Dijsselhof explains, 70% of Swiss stocks were handled in Zurich, while 30% were traded elsewhere; the jump in domestically-traded numbers may simply reflect the fact that Swiss stocks can no longer remain in European markets.
Whether this situation is sustainable in the longer-term is unclear, the banker says. In order to maintain the attractivity of Swiss stocks, “it’s important that they also be available for trading in other markets, including the EU”.
Failure to secure this may lead in the more distant future to Swiss companies moving to other markets, he admits, though “this has not been the case so far”.
In the interview, Dijsselhof, a Dutchman in the job since January 2018, also praised the swift response of the Swiss finance ministry, whose emergency action helped stem the fall-out from the loss of equivalency.
And despite the fact that the SIX Group now has a European monopoly as the Swiss share trading venue, it has no intention of raising its fees – “that would be a very bad signal to send to our clients”, Dijsselhof says.
Most Read Swiss Abroad
More
Swiss politician resigns after firing shots at Jesus picture
What can be done to protect biodiversity in your country?
Swiss voters are set to decide on a people’s initiative calling for better protection of ecosystems in the country. Have your say on the September 22 vote.
Switzerland edges closer to stricter screening of foreign investments
This content was published on
Foreign investors are set to face greater scrutiny in Switzerland as one parliamentary chamber passes the so-called Lex China bill.
Increase in animal testing in Switzerland last year
This content was published on
Almost 600,000 animals were used in animal experiments in Switzerland in 2023 - an increase of 1.6% compared to the previous year.
Beleaguered Swiss watch industry calls for political support
This content was published on
The Swiss watch industry is going through difficult times as global demand declines and the strong franc piles on the pressure.
This content was published on
Hollywood star Pamela Anderson will be honoured at the Zurich Film Festival for her career and role in the film The Last Showgirl.
Switzerland to host Ukraine mine action conference in October
This content was published on
Together with Ukraine, Switzerland is organising the Ukraine Mine Action Conference (UMAC2024) in Lausanne on October 17 and 18.
Switzerland revises pension expenditure downwards by billions
This content was published on
The Swiss government has corrected downwards the projected expenditure on old-age and survivor insurance in 2033 by CHF2.5 billion ($2.66 billion).
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Has the EU scored an own goal with Swiss stock exchange freeze?
This content was published on
Of all the sticks the European Union could have used to beat Switzerland into line, freezing out its stock market is one of the most ineffectual.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.