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Old 06.08.2019, 12:45
Yuk Yuk is offline
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Swiss Exchange Suspends Sponsored Foreign Shares Trading

Hello,
Kindly anybody shares to our community what is going on with "Swiss Exchange Suspends Sponsored Foreign Shares Trading," please.
I own Baidu shares (CHF) through Swiss exchange from Degiro brokage account which I wanted to sell them today, 6th Aug 2019. However, Degiro brokage told me that I can not sell them until further notice. Is it possible to share why such unusual thing is happening and what is the prospect or likelihood of this matter to be resolved in the future?

References:
https://www.reuters.com/article/brie...-idUSL8N23Z2PX
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https://www.six-group.com/exchanges/swx_messages/online/swx_message_201906281150_en.pdf

--------------27/06-forword---------------------------
Possible delisting of EU stocks on Swiss exchanges and visa versa
Dear Client,

We would like to bring the below to your attention.

The European Commission Decision granting temporary equivalence to Swiss stock exchanges will expire on 30 June 2019. It is currently unclear whether Swiss stock exchanges will receive another temporary equivalence status by the European Commission for the period after 30 June 2019. This might have an impact on trading in certain shares and other equities. Namely that trading of EU shares could no longer be traded on Swiss stock exchanges. As a response, the Swiss government has announced that it would then prohibit trading venues in the EU from offering or facilitate trading in certain shares of Swiss companies from that date. This means that the trading of certain Swiss (CH) ISINs will only be possible on SIX Swiss Exchange.

There is a high probability that the majority of Swiss instruments will be delisted from European trading venues. Once further information is published, we will look to communicate accordingly.

If you have any questions regarding these matters, please do not hesitate to get in contact with our Service Desk. We are always happy to assist.

Kind regards,
DEGIRO
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Old 06.08.2019, 13:37
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Re: Swiss Exchange Suspends Sponsored Foreign Shares Trading

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Is it possible to share why such unusual thing is happening and what is the prospect or likelihood of this matter to be resolved in the future?
Sure, it is possible. The reason is very simple: Tainted Swiss - EU relationship. Full resolvement is only expected if Switzerland joins the EU unconditionally. The likelihood of that is currently very slim.
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Old 07.08.2019, 23:34
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Re: Swiss Exchange Suspends Sponsored Foreign Shares Trading

Thank you for your email. I appreciated.
Degero called me today and followed up with my situation. They said that there are many people are experiencing same as I am.
They say that we have two choice.
1. Transfer the Buidu (CHF in swiss exchange) shares to another brokage account who is willing to converted to any other exchanges (e.g. euro, pound in London exchange) with a few hundred euro fee. Then, I can sell them if profit are at the end of selling them.
2. Keep holding the Buidu shares within Degiro brokage account, then, wait and hope for agreement resolution between Switerland and EU in the future whitch agreement was expired this year. However, there is no specific date when this agreement meeting can occur with European Commission untill further notice.

Finally, I still feel that there should be some kind of remedies or compensation should be offered to us ( investors) from either Buidu or those Governments.
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Old 08.08.2019, 00:07
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Re: Swiss Exchange Suspends Sponsored Foreign Shares Trading

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Finally, I still feel that there should be some kind of remedies or compensation should be offered to us ( investors) from either Buidu or those Governments.
This is the normal risk of buying stocks on any exchange other than the stockís primary exchange. It happens from time to time for various reasons and I donít see any reason to expect to receive compensation just because you choose to ignore the risk.
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