July 13, 2024

ESMA set to restrict stock trading in the EU


Events surrounding Brexit were long on the headline of various websites and newspapers. Yet the final deal has been reached which officially ended Britain’s tenure in the European Union – the move on which the referendum was held in 2016.

It took Great Britain 4 years to leave the European Union. The relations after Brexit between the United Kingdom and the European Union will still remain but numerous financial and trading regulations will enter in force.

Most recently The European Securities and Markets Authority more commonly known as ESMA announced that strict stock trading regulations will be adopted, which is aimed at reducing currency risks for EU investors.

However one thing should be considered that the approved guidelines will enable trading of the EU-listed shares on London platforms if they are traded in the country’s national currency which is basically pound sterling.

Why is this done?

This is basically being done in order to reduce the issues that may arise with currencies Post-Brexit.

These types of restrictions are not something that private companies will take very kindly to heart. The recent restrictions of CFD trading actually caused a number of top European forex brokers and their regulators to butt heads, causing many to leave the region to settle in a more lax regulatory environment.

British regulators still searching for solutions

We should note that in the meantime British regulators are looking for the ways with rules for the trading of EU-listed shares.

The EU regulator also added that ESMA has done its maximum to prevent any kind of complication or disruption on the market and hopefully market participants will be protected against negative effects

How will the UK look after Brexit?

The UK will cease to be an asterisk on the emblem of the European Union, but what exactly will change on the night of February 1?

The main currency in the City of London was, and will remain, the pound sterling. The British economy is unlikely to collapse overnight.

During the transition period, Britons will be able to continue to pass accelerated border controls, as will EU citizens. But such a privilege will end on December 31, and what will happen next has not been decided yet.

Benefits regarding pensioners would be abolished within six months if the UK failed to strike a deal on the terms of leaving the European Union.

In the three years since the referendum, the pound’s exchange rate against the euro has been low, and trips to warm seas have become more expensive for Britons.

Persons with a European medical card will be able to treat them free of charge in the EU.

Students from the island or continent who went to university there or there in September this year will pay a regular fee, but after 2021, Europeans wishing to study in the UK will be expected to charge up to 30,000 euros – twice as much as vice versa.

So far, conversations on mobile phones, from where and anywhere in the EU, are in principle the same. That’s how it’s been this year. But from January 1, 2021, IK-based roaming charges in the EU are likely to be reinstated, and are mutually significant.

London can start trade talks with third-country capitals such as the US, but then lose its influence in Brussels.

The EU will try to retain its fishing rights in British waters after 2021. This will probably be the most poignant topic on trade negotiations that the parties will conduct throughout the year. The United Kingdom officially leaves the EU, but much remains to be decided whether to discuss or leave controversial until December 31 and before the end of the transition period. But for people during this period, much will remain mostly still.



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