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CLEARING POST-BREXIT :
What happens now ?
Following the UK ’ s official exit from the EU single market , regulators on both sides of the Channel appear to be splitting on post-trade regulations . What are the potential consequences for this on the post-trade industry , asks Joe Parsons .
When the UK and EU announced their last-minute post-Brexit agreement and there was little to no mention of financial services , the eventual divergence on trading regulation was inevitable .
Early signs of the UK ’ s split from EU regulations came last year when the UK Treasury confirmed it would not implement the Settlement Discipline Regime ( SDR ), set out under the Central Securities Depository Regulation ( CSDR ).
UK Ministers are now reportedly planning to overhaul MiFID II , the EU ’ s main financial services legislation , as it looks to hold onto its place as a global financial centre . Changes could include scrapping the share trading obligation , which forced more than ¤ 6 billion a day of EUdenominated stocks out of London to European-based venues mainly in Amsterdam .
With the UK and EU to set out separate paths on financial regulation , there are
32 // TheTRADE // Spring 2021