Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

News

11,428.3087.15
Stock Analysis, IPO, Mutual Funds, Bonds & More

Brexit clash over share trading would hit markets -UK watchdog

Britain due to leave the EU on Oct. 31, but has yet to agree a divorce settlement with the bloc.

Reuters|
Sep 16, 2019, 02.36 PM IST
0Comments
Agencies
Brexit
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.
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.

Also Read

Countdown to divorce: the meetings that will decide Brexit

Market opens higher amid inflation and Brexit worries

Stocks, pound rise on cautious Brexit deal hopes

What Brexit? London tightens grip on forex trading

Johnson meets Irish PM over Brexit stalemate

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service