Market supervision

Exchanges are responsible for monitoring securities markets under their self-regulatory regimes. FINMA investigates violations of the law based on information received from the exchanges, as well as based on its own suspicions with the aim of enforcing the market abuse provisions of supervisory law and the disclosure requirements set out in the Financial Market Infrastructure Act. It also handles appeals against decisions by the Swiss Takeover Board.

The Financial Market Infrastructure Act (FinMIA) includes provisions banning insider trading (Art. 142 FinMIA) and market manipulation (Art. 143 FinMIA), as well as on the disclosure of shareholdings (Arts. 120-124 FinMIA). As self-regulatory institutions, exchanges must have their own front-line supervisory organisation whereas FINMA concentrates on determining where enforcement is needed and taking the appropriate measures.

FINMA enforcement policy

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FINMA communication policy

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Market supervision beyond the financial market

FINMA is responsible for ensuring that all companies listed on an exchange in Switzerland comply with the market conduct rules. This general market supervision extends beyond the financial market.

FINMA has specific supervisory instruments at its disposal that can be used against all market participants in cases of market abuse (insider trading and market manipulation) and violations of the rules on disclosure of shareholdings:

Where there are reasonable grounds to suspect that misconduct reported to FINMA also constitutes a criminal offence under financial market law, FINMA files a criminal complaint with the competent prosecution authority.

Swift communication on violations of market conduct rules

FINMA immediately communicates details of rulings confirming severe misconduct by market participants. This ensures transparency for the market as a whole and prevents or quickly rectifies distortions of the market.

Appeals body for public takeover bids

The Swiss Takeover Board (TOB) appointed by FINMA reviews public takeover bids for compliance with the law. If a decision by the TOB is contested, FINMA acts as the appeals body.

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