Institutions > Stock exchanges and markets print

Stock exchanges and markets

The Swiss system of stock exchange and market supervision is based on the principle of self-regulation. FINMA is in charge of the overall supervision of the stock exchanges and markets.

With the entry into force of the Stock Exchange Act and the Stock Exchange Ordinance on 1 February 1997, supervision of stock exchanges and markets was standardized at federal level, and stock exchanges and securities dealers were henceforth subject to licensing requirements and supervisionStock exchange legislation is intended to ensure transparency and equality of treatment for investors and create the framework for functioning securities markets.

The Stock Exchange Act is designed to be a framework law offering a high degree of flexibility, with supervisory functions in various areas delegated to self-regulatory organizations.For example, the approval and monitoring process is largely carried out by the licensed stock exchanges.Different regulatory procedures apply for Swiss and foreign stock exchanges.Supervision can also be extended to institutions similar to stock exchanges.

A Swiss stock exchange requires an operating license from FINMA (guidelines).The stock exchanges are responsible for ensuring that an appropriate operating, administrative and monitoring organization is in place. The regulations required for this must be submitted to FINMA for approval.Together with the monitoring organisations of the stock exchanges, FINMA ensures that cases of market abuse (e.g. insider trading, market manipulation) are identified and corresponding suspicions investigated (market supervision).

Foreign stock exchanges without a registered office in Switzerland must be recognized by FINMA before allowing Swiss securities dealers to trade on them. Conversely, foreign stock exchange participants also require FINMA approval in order to operate on a Swiss stock exchange (guidelines).