UPDATE 1-EU to offer Swiss exchanges two-year reprieve if treaty with bloc agreed

The logo Swiss stock exchange operator SIX Group is seen at the entrance hall of the stock exchange in Zurich, Switzerland December 3, 2018. /Arnd WiegmannBRUSSELS () – The European Union executive will offer Swiss stock exchanges a two-year extension of their right to operate in the bloc if an overall deal on future relations is approved by the Swiss government on Friday, EU sources told . If Switzerland does not back the draft pact, however, the European Commission will not extend the recognition of the SIX Swiss Exchange – the country’s main stock exchange – and other trading venues, EU sources said following a meeting of EU diplomats on the issue on Wednesday. The Swiss cabinet is expected to decide on Friday on whether to back the draft agreement reached with the Commission on future bilateral ties. “It’s deal time. Playing for time wouldn’t change anything. The draft will not be changed anymore,” an EU official said. Under the draft deal, which would govern EU-Swiss relations currently regulated by about 120 accords by sector, Switzerland would automatically adapt its migration and social security rules to changes in EU legislation, EU diplomats said. Switzerland has been for decades integrated in the EU market but is not a member of the 28-country bloc. Reporting by Francesco Guarascio; Editing by Alissa de CarbonnelOur Standards:The Thomson Trust Principles.