Federal Council launches consultation on Financial Market Infrastructure Act

Bern, 13.12.2013 - Today, the Federal Council launched the consultation on the Financial Market Infrastructure Act (FMIA). With the act, the regulation of financial market infrastructure and derivatives trading will be adjusted in line with market developments and international requirements. This will sustainably strengthen the stability and competitiveness of Switzerland's financial centre. The consultation will run until 31 March 2014.

The FMIA governs the organisation and operation of financial market infrastructure. The provisions that are currently dispersed in various federal acts will be combined consistently in a single law and adjusted in line with changed market relationships and international standards. The stock exchange regulations are largely the same as those already contained in the Stock Exchange Act. In particular, the existing principle of self-regulation, which has proved its worth in this area, will be maintained. However, the term institutions similar to stock exchanges will be replaced with the more precisely defined terms of multilateral and organised trading systems. A new general authorisation obligation will apply for central counterparties, central depositaries and trade repositories.

With the FMIA, derivatives trading will also be governed in line with the applicable international standards, whereby the FMIA is primarily oriented towards European law. Consequently, the three key obligations for derivatives trading should apply in Switzerland too in the future: settlement of derivatives transactions via a central counterparty, reporting to a trade repository and risk minimisation. Regarding the obligation to conduct derivatives transactions via a trading platform, the bill already contains the corresponding legal basis.  However, it should not be put into force until the trading platform obligation has been introduced in partner states as well.

Finally, because of their close factual connection with trading platforms, the securities dealer categories of issuing and derivatives houses, dealers acting for their own account and market makers will be transferred from the Stock Exchange Act to the FMIA. Also the applicable provisions on the disclosure of holdings, public takeover bids, insider trading and market manipulation will be removed from the Stock Exchange Act and incorporated virtually unchanged in the FMIA.

Address for enquiries

Roland Meier, Media Spokesperson FDF
Tel. +41 31 322 60 86, roland.meier@gs-efd.admin.ch


The Federal Council

Federal Department of Finance