EU share trading flees London
This FT article has copyrights. It was posted on Facebook and I managed to open the full article on FB. This is an extract of what it said: https://www.ft.com/content/a434b756-afe0-454d-9d70-ef2d42ea8d55?utm_content=buffer1dcd1&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer&fbclid=IwAR2q1E_xgRf-6UKaAJhqWpaVefBYsIL9181SOG4IRlf06ig-9wUXBBGng1kEU share trading flees London on first day after full BrexitNearly €6bn of dealing rerouted to newly created European hubs and primary exchangesLondon’s financial sector started to feel the full effects of Brexit on the first trading day of 2021 as nearly €6bn of EU share dealing shifted away from the City to facilities in European capitals.Trading in equities such as Santander, Deutsche Bank and Total moved to EU marketplaces or back to primary exchanges such as the Madrid, Frankfurt and Paris bourses, according to data from Refinitiv — an abrupt change for investors in London who have grown accustomed to trading shares in Europe across borders without restrictions.Business on London hubs for euro-denominated share trading, including Cboe Europe, Turquoise and Aquis Exchange, shifted to their new EU venues set up late last year to cater for the end of the Brexit transition. The volume amounted to a sixth of all business on exchanges in Europe on Monday.“It’s been an extraordinary day. Shifting liquidity is one of the hardest things to do. It’s not ‘Big Bang’ — it’s ‘Bang and It’s Gone’. The City has lost its European share business,” said Alasdair Haynes, chief executive of Aquis Exchange.The UK’s trade deal with the EU largely omitted financial services. UK prime minister Boris Johnson admitted the agreement had failed to meet his ambitions on the sector. The EU had refused to recognise most of the UK’s regulatory systems as “equivalent” to their own, forcing all euro-denominated business to move back to the bloc.The EU and UK are trying to draft a memorandum of understanding on future co-operation on financial services by the end of March, although it would not have the same legal force as an international treaty.Emphasising that the EU and UK were distinct jurisdictions, EU regulators on Monday also withdrew registration of six UK-based credit rating agencies and four trade repositories — data warehouses that provide authorities with information on derivatives and securities financing trades. EU companies and investors will now have to use EU-based entities.
Ivonne Holliday ● 2136d8 Comments ● 2134d