Switzerland To Bring Insider Trading Laws In Line With Europe

by Ulrika Lomas, for LawAndTax-News.com, Brussels

20 October 2004

The Swiss Stock Exchange (SWX) announced earlier this month that changes to its reporting regulations have been approved which will reduce the potential for insider trading, and bring Switzerland into line with the rest of Europe in this regard.

Under the new rules, set to come into force in July of next year, listed companies will be obliged to report to the SWX transactions undertaken by a single member of their management team in the company's shares totalling more than SFr100,000 ($79,000) in any one month. Such reports must be made within two days of the transaction having taken place.

According to a Swissinfo report, this represents a 'watered down' version of the original draft proposals put forward by the SWX Admissions Board. However, representatives of the Swiss banking and business communities had reportedly pushed unsuccessfully for a higher threshold and extended reporting deadline.

Speaking to the Swiss news service, spokeswoman for the Swiss Federal Banking Commission, Tanya Kocher welcomed the new regulations, observing that:

"The effect will be to make the market more transparent for other investors, because they will be able to see who is buying and selling what at a high level. It will also help to prevent insider trading, and brings Switzerland into line with both the United States, where similar regulations already exist, and the European Union, where they are also being introduced."

Recommended