By Huw Jones
LONDON, Nov 4 (Reuters) - Banks and asset managers in
Britain can use exchanges from the European Union to trade
shares from January, Britain's financial regulator said on
Wednesday, creating a cross-border clash in securities rules for
investors.
Britain left the EU in January and access to the bloc ends
on Dec. 31, leaving both sides to decide where investors in
their jurisdictions are obliged to trade shares.
The EU's securities watchdog ESMA has already said that
investors from the bloc can only trade sterling-denominated
shares in London, Europe's centre for multi-currency
cross-border stock trading on platforms like the London Stock
Exchange's Turquoise, Cboe, and Aquis Exchange.
But Britain's Financial Conduct Authority said on Wednesday
it would allow firms to continue from January trading all shares
on trading venues from the EU where they choose to do so, rather
than limiting themselves to platforms headquartered in Britain.
"Any restriction on the trading of shares based on currency
does not reflect the multicurrency nature of global capital
markets and limits the ability of firms to determine how best to
use global capital markets to support economic activity," the
FCA said in a statement.
Brussels had hoped that Britain would oblige investors in
the United Kingdom to use domestic platforms to avoid a clash in
regulatory requirements.
The FCA said it remains open to discussing with ESMA how to
minimise any disruption that could arise from overlapping
requirements on financial counterparties.
"Our approach, driven by our objectives, will preserve the
ability of UK-based firms to execute their share trades at the
venues where they can get the best outcomes for themselves and
their customers," the FCA said.
(Reporting by Huw Jones; Editing by Catherine Evans)