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Switzerland

In the wake of the Enron crisis, the Federal Banking Commission has toughened its stand on energy trading and energy traders. In particular, Swiss firms which intend to participate at the new European Energy Exchange (EEX) in Leipzig, may do so only if they have received a broker/dealer licence from the Federal Banking Commission.

The Federal Banking Commission has demanded from EEX – which is licensed by the Swiss Federal Banking Commission for granting Swiss firms access to its trading system – that it no longer allows participation from unregulated Swiss entities. In its revised regulations, EEX has included such a provision.

Under Swiss law, a broker-dealer trading on their own account with a volume of less than SFr5 billion ($3.4 billion) per year does not qualify as a broker-dealer under the Swiss Securities and Exchange Act and, therefore, need not to apply for a licence. However, if they wish to participate in a foreign exchange as a trading member, they will now have to apply for a licence to the Federal Banking Commission.

Andreas Huenerwadel

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