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Raising the tensions between two of Europe’s most important markets agencies, Steven Maijoor, chairman of the European Securities and Markets Authority, called on counterparts in London to lay out their plans in more detail.
Tensions between Esma, which sets standards across the 28-country bloc, and the UK’s Financial Conduct Authority, the City’s regulator, have risen in recent months over managing the fallout to equities trading should Britain leave the EU on October 31 without a deal.
Mr Maijoor told a conference in Dublin late on Tuesday that the complex network of cross-border deals would be fragmented by the UK’s sudden departure from the EU. [...]
Mr Maijoor said that the EU would stick to its policy. “Despite this adjustment, I should be clear that the STO will fragment markets and, being a supporter of open markets, I regret that result very much,” he said. “However, it is important to point out that this is inherently related to the UK’s decision to leave the EU and the risk of a no-deal Brexit.” [...]
Mr Maijoor said the FCA planned to disclose its approach once it is clear there is a no-deal Brexit. “Practically, this may mean that clarity will only be provided a few days, or perhaps even a few hours, ahead of a no deal situation,” he cautioned.
“To allow market participants to properly prepare for the risk of a no-deal, I sincerely hope that this timing is reconsidered, and that clarity is provided well-ahead of the October Brexit date.”
Full article on Financial Times (subscription required)