LSEG’s European trading venue saw lit average daily volumes increase 30% from January to March 2021.
The agreement follows months of stalemate in discussions between the two entities regarding UK-EU equivalence across the financial markets.
A survey by FIA has found that 23% of firms see fragmentation of markets as the most concerning impact of Brexit on the derivatives market.
The EU watchdog will not renew the short selling reporting changes which are due to expire on 19 March, following an extension in December last year.
Research unbundling and best execution reporting requirements are at the heart of the European Commission’s COVID-19 relief plan.
The pan-European exchange has subsequently reshuffled the leadership of its Paris business in preparation for the completion of the deal.
Andrew Bailey says the UK must “resist very firmly” the EU’s attempts to force all euro-derivatives clearing into the bloc.
A report by IHS Markit found that UK market share in euro-denominated swaps fell from 40% to 10% in January.
On 4 January 2021 as the Brexit transition period came to an end, €6 billion of trading volumes left London. Annabel Smith examines the impact of this and asks what the future holds for the industry.
Andrew Bailey says EU and UK equivalence process has not been straightforward as he urges now is not the time to have a regional argument.