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
AstraZeneca PLC8,367.00 GBP0.00Rating
BHP Group Ltd ADR55.96 USD0.00Rating
BP PLC327.70 GBP0.00Rating
GlaxoSmithKline PLC1,525.00 GBP0.00Rating
Rio Tinto PLC4,621.50 GBP0.00Rating
Royal Dutch Shell PLC B1,594.00 GBP0.00Rating

About Author

James Gard  is content editor for Morningstar.co.uk