The U.K. will lift the ban on trading in Swiss shares and bring them back to London, making it one of the major economical steps after its exit from the European Union and termination of Brexit transition period.
According to the Treasury, legislation in parliament will be launched in the following weeks, once approved, to override the previous EU ban. In a statement, a spokesman said that the Swiss State Secretariat for International Financial Matters will be removing restrictions on U.K. trading venues.
In 2019, Brussels had repealed the recognition of Swiss stock exchanges over trade negotiations, resulting in the shift of €1.2 billion in daily trades away from the City of London.
The Swiss plans mark the opting out of EU standards and looking for better opportunities elsewhere. The link with Switzerland is yet to be rekindled with the assistance of the legislation, which will be laid in the parliament in the following week. Switzerland will reciprocate with the allowance of trading of Swiss shares in London.
With the exit on Dec. 31, U.K. witnessed a €6.5 billion shift in business from three major locations in London into the EU on Day 1 of trading.
