Tag Archives: Securities & Commodities Exchange (TRBC level 5)

Switzerland lifted the ban, and London will resume trading in Swiss stocks | Instant News


ZURICH / LONDON (Reuters) – Britain can now claim at least one advantage of leaving the European Union: The Swiss government will allow Swiss shares to trade on the London market again.

FILE PHOTO: Buildings seen in Canary Wharf business district, amidst the coronavirus disease (COVID-19) outbreak, in London, England January 27, 2021. REUTERS / Peter Cziborra

Trading will resume on Thursday after Switzerland lifted its 19-month ban on Wednesday. That would partially cover the City of London’s trading losses in euro shares to the EU last month after Britain finished leaving the bloc.

Brussels stopped EU investors from trading on Swiss exchanges in June 2019 after a disagreement over an agreement. Switzerland later banned EU exchanges from trading Swiss stocks.

But Britain has not been bound by EU rules since leaving the bloc completely, and the countries are working to rebuild bilateral ties. Switzerland is not a member of the EU, and on Wednesday, Swiss financial market watchdog FINMA said here trade can be continued.

The return to Swiss trading will be of little benefit to the London equity markets. Brexit causes daily stock trading of over 6 billion euros ($ 7.21 billion) in EU stocks leaving London for platforms in Amsterdam and Paris on January 4.

Prior to the EU ban, the London platform handled about 1.2 billion euros daily in Swiss shares, or about 27% of total volume, Cboe Europe figures show. The list of tradable shares includes names such as Nestle and Novartis.

Cboe Europe, Aquis Exchange and the London Stock Exchange’s Turquoise said they will start offering trading in Swiss stocks in London on Thursday.

“The recent agreement between the UK and Switzerland on stock exchange equivalents is a welcome development,” said Turquoise CEO Robert Barnes.

“This will increase liquidity and trading efficiency in hundreds of securities for the benefit of issuers and investors in both financial centers.”

Swiss exchange operator SIX welcomed the news.

“We have always supported open and international capital markets, and this is in the interest of both national and international investors,” said SIX Chairman Thomas Wellauer in a statement.

“Joint recognition of equality will enable fair exchange and competition between major financial centers in Switzerland and the UK.”

Reporting by Michael Shields in Zurich and Huw Jones in London; editing by Rachel Armstrong, Jason Neely, Larry King

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Switzerland approves trading of Swiss stocks on British exchanges | Instant News


FILE PHOTO: Buildings seen in Canary Wharf business district, amidst the coronavirus disease (COVID-19) outbreak, in London, England January 27, 2021. REUTERS / Peter Cziborra

ZURICH (Reuters) – The Swiss government has given the green light for trading of Swiss companies’ shares on British exchanges to resume, said Swiss financial market watchdog FINMA. here on Wednesday.

Brussels blocked EU investors from trading on Swiss exchanges in June 2019 after a treaty dispute, with Switzerland later barring EU exchanges from trading Swiss stocks.

But Britain has not been bound by EU rules since leaving the bloc completely, and the countries are working to rebuild bilateral ties. Switzerland is not a member of the European Union.

The London platform handles about 1.2 billion euros ($ 1.44 billion) daily in Swiss shares, or about 27% of total volume ahead of the EU ban, Cboe figures show.

A return to Swiss trading would be a small boon for London equities, after Brexit meant daily trading of billions of euros worth of shares in EU stocks left the capital for platforms in Amsterdam and Paris.

($ 1 = 0.8308 euros)

Reporting by Michael Shields in Zurich and Huw Jones in London; Edited by Riham Alkousaa and Rachel Armstrong

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New Zealand’s financial market regulator said NZX failed to meet technology standards | Instant News


FILE PHOTOS: People view exchange rates displayed on the NZ Stock Exchange in Wellington on 23 September 2009. REUTERS / Anthony Phelps

(Reuters) – New Zealand’s financial market regulator says the country’s exchange operator’s technology systems are “inadequate” following an investigation into several blackouts and cyber attacks that hit exchange operators last year.

The Financial Markets Authority (FMA) said on Thursday NZX Ltd’s technological capability to meet market operators’ obligations was not present across the platform, adding that the exchange lacks planning in its approach to cyberattacks because it is “predictable”. (bit.ly/2Nz1FPu)

The exchange operator suffered disruption due to high volume in April and was hit by a week-long distributed denial of service (DDoS) attack in August, which crashed its website and briefly halted trading.

“NZX accepts that they are not meeting the high standards it has set for itself in key areas of technology resources,” the exchange operator said in a statement.

NZX also said it would work with the FMA to develop an action plan to increase the exchange’s technology resources.

Reporting by Anushka Trivedi in Bengaluru; Edited by Aditya Soni

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Australia’s securities regulator said the server was hit by a cyber security breach | Instant News


(Reuters) – Australia’s securities regulator said on Monday that there was a cyber security breach on the server used to transfer files including a credit license application on which some information may have been viewed.

The Australian Securities and Investments Commission (ASIC) said it was aware of the incident on January 15 although it appears that a credit license form or attachment was not downloaded.

“While the investigation is ongoing, there appears to be some risk that some limited information may have been seen by threat actors,” the regulator said in a statement late Monday.

The server has been disabled and no other technology infrastructure has been breached, ASIC added.

The incident occurred with file sharing software provided by California-based Accellion. The same software was used by New Zealand’s central bank, which faced cyber attacks earlier this month.

Accellion did not immediately respond to a Reuters request for comment.

Reporting by Rashmi Ashok and Nikhil Kurian Nainan in Bengaluru; Edited by Toby Chopra

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The EU needs a ‘master plan’ to wrest euro finances from London | Instant News


LONDON (Reuters) – The European Union needs a “master plan” to move euro financial services from London to the bloc if it is to expand the role of the single currency in a global economy dominated by the US dollar, a senior EU lawmaker said Monday.

FILE PHOTO: Outside view of European Commission headquarters during the coronavirus disease (COVID-19) outbreak in Brussels, Belgium, April 23, 2020. REUTERS / Johanna Geron

Markus Ferber, a senior member of the European Parliament, said if the EU is to compete with the greenback, it needs an appropriate financial system.

“We need a clear step-by-step master plan that helps major financial sector businesses move from the UK to the European Union,” said Ferber.

He was speaking ahead of the publication of a European Commission paper on Wednesday on promoting the global role of the euro that sets out how to reduce dependence on the City of London, Europe’s biggest financial center, after Brexit.

“The COVID-19 crisis has highlighted vulnerabilities in the dollar-dominated international financial system,” said the commission paper.

“Britain’s withdrawal from the EU reinforces the need to further deepen the Union’s capital markets.”

This paper recommends better enforcement of EU sanctions, and makes EU-based financial market infrastructure less vulnerable to unilateral sanctions from third countries.

EU-based securities depository Clearstream and Euroclear, and messaging services such as Swift were affected by President Donald Trump’s actions against Iran.

Trading in euro-denominated debt securities, commodities and other instruments should also be encouraged, the paper said.

The EU’s “MiFID” securities reform and benchmark rules should aim to help the euro-denominated energy index emerge, and increase the attractiveness of euro bonds and stocks, he said.

EU and European Central Bank executives will also review the policy, legal and technical issues arising from the possibility of a digital euro.

The Commission, ECB and the bloc’s market and banking watchdog will work with industry to assess “possible technical issues” associated with the shift in derivatives positions from London to the EU, the paper said.

This paper may minimize the likelihood that the EU will provide UK financial services access to the EU beyond the temporary access it has granted to derivatives clarifiers by mid-2022.

About 6.5 billion in euro stock trading switched from London to the bloc overnight on January 4 and city officials do not expect this to return, with swap trading by EU investors also under pressure to leave.

“A related source of risk is the excessive reliance of EU banks on the foreign currency exchange market,” the paper said.

When looking at company takeovers, the Commission will also check whether they make EU companies “more vulnerable” to comply with sanctions from third countries, the paper said.

There was also a need to cut the bloc’s “over-reliance” on foreign investment banks and foreign currency funding, he said.

Reporting by Huw Jones; Edited by Catherine Evans

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