Analysis from big xyt shows that some stocks will be caught in the crossfire of a UK share trading obligation, as industry’s concern on EU no-deal Brexit share trading plans heightens.
As UK and European regulators clash over post-Brexit share trading rules, it could spell further divergence for post-trade arrangements.
Amsterdam trading venue was due to go-live on 1 April, but as Brexit negotiations continue Cboe Europe has postponed launch.
Approval will allow European-based clients to continue trading on the EquiLend platform without the interruption of the UK’s exit from the EU.
Major UK stocks including Vodafone and Coca-Cola would have to be traded within the EU in ‘no-deal’ Brexit scenario under the share trading obligation.
Cboe and Turquoise have established EU entities in Amsterdam, while Aquis Exchange set up its new EU base in Paris.
US exchange operator CME will transition some BrokerTec and reporting services from the UK to the Amsterdam entity.
Pending regulatory approval, futures broker RJ O’Brien has said it will establish an office in Paris to build its European client base.
Cboe will operate an MTF and APA from Amsterdam as the UK’s departure from the European Union grows closer.
Asset manager established Irish-based management firm in January as part of Brexit contingency plans.