5.V.1.3.3 Case of Switzerland

A main challenge in the context of third country venues has been Switzerland (a non-EEA country). Switzerland was initially deemed equivalent, but the equivalence decision expired on 30 June 2019 and was not extended.1 Without equivalence (or exceptions to the share-trading obligation), MiFID II investment firms can no longer place orders in shares subject to the MiFID II share trading-obligation on Swiss third country trading venues (i.e. SIX Swiss Exchange and BX Swiss). The Swiss shares can only be traded on regulated venues eligible for the MiFID II share trading-obligation, that is –RMs, MTFs, SIs, or other equivalent third country trading venues.2 In a nutshell, the Swiss government responded with national regulation requiring that certain Swiss shares may no longer be admitted to trading on an RM or traded on an RM or MTF.3 As a consequence, these shares will fall outside the MiFID II share trading-obligation and may continue to be traded on SIX Swiss Exchange and BX Swiss (or any other Swiss trading venue) on and after 1 July 2019. Swiss shares that fall outside the new Swiss regulation and are admitted to trading on an RM or traded on an RM/MTF will continue to fall within the MiFID II share trading-obligation (unless exceptions to the MiFID II share trading-obligation apply).4