ESMA creates permissions for EU companies to trade stocks within post-Brexit UK

Discussion in 'Wall St. News' started by mlawson71, Oct 28, 2020.

  1. mlawson71

    mlawson71

    Brexit is almost a reality – the eleven-month transition period will end this December and financial regulators on both sides are preparing legislation for when the process is finalized.

    ESMA issued a few new permissions for share traders, who could only conduct their trade within the borders of the European Union – that particular rule was from May 2019.

    With the new permissions, however, companies whose stocks are traded in British pounds will be able to continue doing so in London once the transition period ends in a few months.

    ESMA clarified that the reasons for that decision was lowering currency risks for EU investors and strengthening the EU’s markets.

    That makes sense to me. It is obvious there will be a further non-official adjustment period after the end of December this year.