According to Six, equivalence of the Swiss regulation with international standards will secure market players' access to the relevant foreign markets over the long term, strengthening the international competitiveness of the country’s financial services industry.
‘The draft takes a pragmatic approach to implementing international developments, providing legal certainty and creating an equal playing field for market players. The clear and comprehensible regulation governing financial market infrastructure, OTC derivatives trading and the interplay between relevant market players in a single enactment is decisive in terms of recognising the equivalence of Swiss law with international standards.’
According to Six, it is vital to establish an approach that is in line with international developments in terms of both content and timeline.
‘Various regulatory proposals in the EU have still not yet run their course or are plagued by an uncertain outcome. The planned legislation must take account of this fact by introducing appropriate mechanisms that enable flexible implementation.
'Over-eagerness to introduce a legislative framework will ultimately lead to more stringent regulations than abroad and thus put Switzerland at a competitive disadvantage.
‘The planned financial market infrastructure act will introduce new regulations for OTC derivatives trading in line with international standards.
'This regulation does not exist in isolation; rather, it is inextricably linked with the legal framework of the financial market infrastructure. Within an international context, it is also imperative to establish a clear and comprehensible system of legislation for recognising the equivalence of Swiss and EU regulations – and thus also for guaranteeing market access.’