FCA Warns EU Regulator Not Doing Enough To Help Stock Markets

The EU regulator has made concessions over stock trading in a no-deal Brexit, but the FCA says volatility and liquidity risks are still exist

James Gard 29 May, 2019 | 3:31PM

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The Financial Conduct Authority has warned that EU restrictions on share trading in the event of a no deal Brexit could cause disruption to investors and affect liquidity.

EU financial regulator ESMA announced plans in March under the “share trading obligation” that would have restricted – if the UK had left the EU without a deal – the trading of certain stocks with a UK code (or ISIN) to within the EU. This would mean that, in the event of a no deal Brexit, a German fund manager, for example, would have to trade UK blue-chips on a European stock exchange rather than the London Stock Exchange. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
AstraZeneca PLC7,574.00 GBX-0.54
BHP Group Ltd ADR50.64 USD-1.54
BP PLC466.20 GBX0.73
GlaxoSmithKline PLC1,650.00 GBX-1.67
Rio Tinto PLC4,209.50 GBX0.19
Royal Dutch Shell PLC B1,921.00 GBX-0.62

About Author

James Gard  is content editor for Morningstar.co.uk

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