EU confirms Switzerland’s supervision of central counterparties as equivalent

The European Commission has recognized the Swiss supervisory regime of central counterparties as equivalent to the relevant provisions applicable within the European Union (EU). The decision, which was announced today, enables Swiss central counterparties to access cross-border markets in the EU.

In order for central counterparties to offer cross-border services from Switzerland within the EU, they need authorization from the European Securities and Markets Authority (ESMA). A condition for obtaining such authorization is to have an equivalent supervisory system in place.

swiss_flag_mapIn its equivalence evaluation, ESMA explored whether Switzerland’s supervisory regime for central counterparties corresponds with the EU’s legal regulations, that is, the bloc’s regulation on OTC derivatives, central counterparties and trade repositories, EMIR. Based on this evaluation, the European Commission has recognized Switzerland’s supervision of central counterparties as equivalent.

Thus far, the European Commission’s decision which enables Swiss providers to access EU markets, concerns only one central counterparty in Switzerland.

The Swiss Financial Market Supervisory Authority (FINMA) today welcomed the European Commission’s decision. The Swiss regulator said that it regards this as an important step towards securing effective, efficient and internationally agreed supervision of central counterparties and of financial markets in general.

To view the press release from FINMA, click here.

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