Brexit clash over share trading would hit markets: UK watchdog
Reuters
Published Sep 16, 2019 04:33AM ET
Brexit clash over share trading would hit markets: UK watchdog
LONDON (Reuters) - Overlapping British and European Union share trading rules would damage markets "to no good end" and can be avoided, Britain's top markets watchdog said on Monday.
Britain is due to leave the EU on Oct. 31, but has yet to agree a divorce settlement with the bloc.
Brussels has said that if there is a 'no-deal' Brexit, investment firms in the bloc must trade euro-denominated shares in the EU; many are currently heavily traded in London.
Financial Conduct Authority CEO Andrew Bailey said some of this overlap must be avoided. "It is therefore easy to conclude that for those shares, market liquidity would be damaged to no good end," Bailey said in a speech at Bloomberg.
He reiterated comments from the Bank of England that extensive preparations for a no-deal Brexit would not mean that all disruption in markets can be avoided.
Brussels has said that EU customers could continue using clearing houses for derivatives in London until March next year if there is a no-deal Brexit.
This date was reflected Britain's original plan to leave the EU last March. Bailey said Brussels would need to grant an extension soon if there is a no-deal Brexit.
There is no reason to "sacrifice open financial markets" and many reasons to preserve them, Bailey said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.