Switzerland has for many years been a centre of financial excellence. Its long history as the bank of Europe has led to this small area with a population of only 7.5 million people becoming a focus for foreign exchange trading, and now electronic FX, in Europe. Although Switzerland is not a member of the European Union, many large corporations and asset managers based in Switzerland also have subsidiaries in other parts of Europe, which are subject to EU regulations and directives such as MiFID. As a result, the Swiss market tends to adopt best practices in line with the EU's harmonised approach to legislation.
Impact of non-EU status
Yet Joe Helbling, sales manager for Switzerland, Austria and Liechtenstein at 360T, states on the EU: "From my point of view the non-EU membership of Switzerland does not influence eFX trading here at all. The FX market is a global market and market participants from Switzerland have a long tradition of playing in this market, and also international players have an even longer history of selling into Switzerland. E-services are making this selling even easier."