Best Execution
  • Home
  • Publication

    Best Execution

    • Current issue
    • Back issues
    • Profiles
    • Viewpoint
    • Market Opinion
    • Supplements
  • Topics

    Topics

    • Equities Trading
    • Fixed Income Trading
    • Derivatives Trading
    • FX – Foreign Exchange
    • Post-trade
  • Partners
  • Listings
  • Awards

    European Women in Finance Awards

    • European Women in Finance – The Programme
    • European Women in Finance – The Winners
  • Events
  • About us

    About us

    • Marketing
    • Media info
    • Contact
  • Newsletter
  • Login
  • Home
  • Publication
    • Current issue
    • Back issues
    • Profiles
    • Viewpoint
    • Market Opinion
    • Supplements
  • Topics
    • Equities Trading
    • Fixed Income Trading
    • Derivatives Trading
    • FX – Foreign Exchange
    • Post-trade
  • Partners
  • Listings
  • Awards
    • European Women in Finance – The Programme
    • European Women in Finance – The Winners
  • Events
  • About us
    • Marketing
    • Media info
    • Contact
  • Newsletter
  • Login
HomeNewsBrexit resolution for City of London still hangs i ...
Previous Next

Brexit resolution for City of London still hangs in the balance

Posted by: Lynn Strongin Dodds, December 29, 2020
Tweet
Share
Share
Pin
0 Shares

The UK may have agreed a last-minute Brexit trade deal, but the wait continues for the fate of the financial services industry outside the European Union.

In fact, Prime Minister Boris Johnson conceded that it fell short in terms of the financial services sector although Chancellor of the Exchequer Rishi Sunak has sought to calm fears that the City will be hamstrung by a lack of progress on equivalence with the EU.

Overall, services comprise around 80% of the UK economy and they have largely been left out of the 1,246-page long agreement which is expected to be approved by Parliament tomorrow.

SpeakBrexit resolution for City of London still hangs in the balanceing to journalists Sunak said the aim was to establish agreements on the system of equivalence, whereby UK banks and other financial institutions can trade, on a regulatory basis, as if they were still in the EU.

He added that this deal also provides comfort because there is a stable regulatory co-operative framework mentioned in the deal. “I think that will give people that reassurance that we will remain in close dialogue with our European partners when it comes to things like equivalence decisions,” he added

The chancellor said he hoped a planned memorandum of understanding on the issue between the UK and EU in the next few months could smooth over several obstacles. However, the memorandum would not have the same legal force as an international treaty.

The EU has made it clear that the UK will need to wait until after 1 January 2021 to learn what market access rights its financial services companies will have in future.

In an explanatory document on the trade deal, the European Commission noted that “a series of further clarifications will be needed [from Britain], in particular regarding how the UK will diverge from EU frameworks after 31 December.”

It said, “For these reasons, the Commission cannot finalise its assessment. . . and therefore, will not take decisions at this point in time. The assessments will continue.”

There were reports that the City could potentially lose €9bn in European stock trades a day since EU based customers will be unable to trade on markets based in the UK unless the European Commission formally recognises the country as having equivalent financial regulations

Equivalence has been a sticking point with EU officials seeking greater clarifications from the UK about its future to ensure that they would be aligned with European norms.

©BestExecution 2020

Back to Top

0

Tags: Boris Johnson, Brexit, European Union UK, financial services, Rishi Sunak

Share!
Tweet

Lynn Strongin Dodds

About the author
mm

Related Posts

City jobs hit by pandemic and Brexit

City jobs hit by pandemic and Brexit

Jobs in the City of London may have been hard hit by a combination of Covid-19 and Brexit with ...
The long road to equivalence

The long road to equivalence

The EU is unlikely to grant broad access for the City of London, and the flight of euro share t ...
UK Treasury hopes to kickstart equivalence talks with EU this week

UK Treasury hopes to kickstart equivalence talks with EU this week

The UK government plans to start urgent talks this week in an attempt to hammer out an agreemen ...
FCA sets out its reporting stall

FCA sets out its reporting stall

The UK’s Financial Conduct Authority (FCA) has said that the Securities Financing Transactions ...

Leave a Reply Cancel reply

You must be logged in to post a comment.

Best Execution
Recent
Comments
Tags
  • City jobs hit by pandemic and Brexit

    City jobs hit by pandemic and Brexit

    January 18, 2021
    ISDA paper shows OTC derivatives weathered pandemic storm

    ISDA paper shows OTC derivatives weathered pandemi ...

    January 15, 2021
    DTCC paper on the repercussions of Covid for FMIs

    DTCC paper on the repercussions of Covid for FMIs

    January 13, 2021
    Sad announcement of the death of Andrew Edwards. CEO of Saxo Capital Markets

    Sad announcement of the death of Andrew Edwards. C ...

    January 13, 2021
    People: Chris McConville new sellside chair at Plato

    People: Chris McConville new sellside chair at Pla ...

    January 13, 2021
  • I would agree "passive ownership was “a rounding e ...

    October 30, 2017

    Well, this would add a certain spin to our Autumn ...

    July 26, 2013
  • 11:FS 20:30 2010 Flash Crash 2016 2030 Group

Subscribe for Email Updates

Menu

  • Home
  • Publication
  • Topics
  • Events
  • Partners
  • Listings
  • Privacy notice
  • About us

Best Execution

In these uncertain times and as the tide of regulation rises ever higher and wider, Best Execution offers an in-depth analysis into the major trends that are shaping the financial services industry as well as providing a more detailed insight into the technology driving new products and services being developed to meet these challenges.

Where the buyside and sellside meet.

Wikipedia: Best Execution

Social

linkedin
Newsletter Sign Up
Copyright © 2020 Best Execution | Site by Refractiv.
  • Home
  • Publication
  • Events
  • Privacy notice
  • Login