London fears it will be EU’s next capital markets target

A diplomatic stand-off between Switzerland and the European Union that may leave Swiss capital markets as potential collateral damage has fanned concerns in London that a similar fate awaits Britain. Switzerland’s Six Exchange recently decamped to a new modern-but-modest office in Zurich but behind the scenes its mood is anything but settled. Switzerland’s stock exchange faces the threat that the EU might be about to pull the plug on a large chunk of its business. Six has been caught in a clash between Brussels and Bern over the affluent Alpine state’s future relationship with the EU. The stand-off could result in the Swiss exchange losing the EU’s “equivalence” status, which allows cross-border financial markets trading. That has not escaped the attention of many in the City of London. Alasdair Haynes, chief executive of Aquis Exchange, a London share trading venue affected by the uncertainty, said: “Everyone is looking to see how much flexibility there is with equivalence.

 
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