Think maybe you are misreading the switch. Mine is a standard one still I think. Ignition is written along the top (when mounted) but does not really refer to the second dot. (just that this is the ignition switch, surprise, surprise)
Position one is "OFF" : First click clockwise is "ignition" (and everything else) ON : second click is "parking lights" (just front pilot and rear, I think) (not got a working bike today).
The key is removable at the second click and only captive in the central position.