UK urges EU rethink on ‘damaging’ equity markets plan amid Brexit

Bloomberg

Equity markets will face significant damage in a no-deal Brexit unless the European Union reverses a plan to block traders in its home territory from using London exchanges, the UK’s top market watchdog said.
Andrew Bailey, the Financial Conduct Authority’s chief executive, called on the EU to urgently rethink its position before October 31, when Britain is scheduled to leave with or without a deal. Trading in a large number of European shares will be harmed, Bailey said in a speech in which he called for a new round of talks with European counterparts to prevent a rupture in markets.
Bailey said some shares would face dual, conflicting obligations because of the overlap between UK and EU rules. “It is therefore easy to conclude that for those shares, market liquidity would be damaged to no good end,” he said in prepared remarks.
The European Commission did not immediately respond to a request for comment, while the European Securities and Markets Authority stood by its previous statements. David Cliffe, a spokesman for the regulator, said the so-called share trading obligation would come into play if the Commission does not deem the UK’s rules to be equivalent to its own.
“ESMA has been clear about its approach to the STO in such a situation, providing clarity to market participants in May, giving them time to prepare for such an outcome, and would welcome the FCA providing similar clarity too,” said Cliffe.
Bailey’s speech at Bloomberg’s London office came with broader Brexit negotiations at PM Prime Minister Boris Johnson sticks to his pledge that Britain will leave the EU “do or die” on October 31 despite widespread opposition in UK parliament.