As the likelihood of a no=deal Brexit increases, there is confusion reigning in Britain and EU about where thousands of shares would be traded after Britain’s departure from the EU.

Eurozone’s regulator, European Securities and Markets Authority (ESMA), has proposed a partial relaxation to limit trading outside EU, but this is not enough of a move as far as British regulator Financial Conduct Authority (FCA) is concerned. In March, ESMA had remarked that in the event of a no-deal Brexit, 6,200 of EU-listed shares, including 14 UK stocks, could only be traded on platforms within the EU region.

As a no-deal Brexit becomes more likely, the ESMA has agreed to soften this statement to allow EU banks and investment firms to trade all UK shares in Britain. However, firms incorporated in the EU will not be added to this deal.

The FCA expressed concern that this move could create disruption and limit companies from accessing serious investors and restrict their freedom to choose where to list. Will the FCA retaliate by restricting trading of shares in Britain?