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Swiss expect deal with EU over clearing house 

April 27, 2015

Huw Jones, Reuters

The European Union is expected to give the green light for Switzerland's securities clearing house to keep operating inside the 28-country bloc, a senior Swiss markets official said on Friday.

Without EU agreement that Swiss financial rules are equally strict as the bloc's own standards, customers using the London Stock Exchange and other platforms across Europe could face higher costs.

Clearers stand between two sides of a trade to guarantee its completion even if one side goes bust.

"So far as we can judge, the process is on track and we hope to get equivalence this year," Tomas Kindler, head of clearing at SIX Securities Services, part of the Swiss trading to clearing and settlement group.

Reuters reported this week that similar negotiations between the EU and the United States had not proceeded well enough to meet a June deadline.

This has forced the European Commission to seek EU member state backing for extending the deadline to December, its third six-month delay.

Read more: Reuters

 
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