EU vs. Britain: Where to Trade Shares in the Event of a No-Deal Brexit? - Forex News by FX Leaders

EU vs. Britain: Where to Trade Shares in the Event of a No-Deal Brexit?

Posted Wednesday, May 29, 2019 by
Arslan Butt • 1 min read

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?

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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