The recognition obligation has been applicable to foreign trading venues if they admit shares of Swiss registered companies since January 1, but the Swiss Federal Department of Finance issued a statement Monday indicating that it is prepared to withdraw the recognition of EU venues.
"Activating the protective measure with regard to trading venues in the EU serves solely to protect the functioning of the Swiss stock exchange infrastructure." For several years, the EU has been trying to implement a new framework consolidating over a hundred bilateral treaties governing ties between Brussels and Bern into one accord, in order to ensure the Swiss cannot renege on obligations such as immigration without losing EU market access.
Beat Wittmann, partner at Zurich-based Porta Advisors, told CNBC's "Squawk Box Europe" on Wednesday that the Swiss had more to lose from a fraying of relations.