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Britain Sets up Share Trading Clash with EU

LONDON, Nov 4 Reuters Banks and asset managers in Britain can continue using exchanges from the European Union to trade shares from January, Britains financial regulator said on Wednesday in a bid to preserve the City of Londons dominance in crossborder markets.

Britain left the EU in January and full access to the bloc under transition arrangements ends on Dec. 31, leaving both sides to decide in the continued absence of accords on twoway financial market access where investors in their jurisdictions can trade, known as the share trading obligation or STO.

The EUs securities watchdog ESMA has already said that from January investors from the bloc can only trade EU company shares in London if they have a sterling listing.

This would split markets by forcing chunks of trading in euros to move to the EU from London, Europes centre for multicurrency crossborder stock trading on platforms such as the London Stock Exchanges Turquoise, Cboe, and Aquis Exchange.

Britains Financial Conduct Authority said on Wednesday it would allow firms it regulates to continue trading all EU shares on trading venues headquartered in the bloc, where they choose to do so, refusing to mirror ESMAs currency restrictions.

The FCA said its stance would keep international markets open and preserve the ability of UKbased firms to execute their share trades where they can get the best deal for customers.

While we note ESMAs recent clarifications to reduce the potential overlap of an EU and UK…

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