© Reuters. A man shelters under an umbrella as he strolls past the London Stock market
LONDON (Reuters) – Britain’s financial watchdog published on Friday a consultation paper on carrying out a reform of European Union securities markets, signaling to banks that last month’s vote by Britons to leave the EU needs to not derail preparations for the new rules. The bloc’s MiFID II reform will bring in sweeping modifications to securities markets by tightening controls of commodities, injecting more openness into trading, and playing regulatory catch up with ultra-fast share orders. The guidelines enter force in January 2018, only a year prior to some UK federal government ministers desire Britain to have completed settlements to leave the EU. Financial Conduct Authority Chief Executive Andrew Bailey said MiFID II reflected themes of UK conduct regulation and carried out global commitments that Britain had backed – meaning such rules would remain in location after leaving the EU. “As we said in our statement following the EU referendum, firms must continue to follow their responsibilities under UK law, consisting of those originated from EU law and continue with execution prepare for legislation that is still to come into result,” Bailey stated in a statement. He has currently cautioned there will not be a “bonfire of regulations” after leaving the EU. The new European securities law will likewise present the capability for nations outside the bloc to offer their services to European clients if they can show that their own rules are “equivalent” or as strict as those in the EU. Attorneys have said this would suggest Britain can leave the EU’s single market as its monetary services sector might rely on the equivalence program to continue operating throughout the bloc. Critics state the equivalence system is untried, susceptible to political interference, and hard to keep if the bloc makes changes to its guidelines which Britain might not concur with.
Disclaimer: Blend Media wish to remind you that the data contained in this site is not necessarily real-time nor precise. All CFDs (stocks, indexes, futures) and Forex rates are not supplied by exchanges but rather by market makers, and so prices may not be accurate and may vary from the actual market price, suggesting costs are a sign and not suitable for trading purposes. Therefore Blend Media does n`t bear any obligation for any trading losses you might incur as a result of using this information. Fusion Media or anybody included with Combination Media will not accept any liability for loss or damage as a result of reliance on the details consisting of data, quotes, charts and buy/sell signals contained within this site. Please be completely informed relating to the dangers and expenses associated with trading the financial markets, it is among the riskiest investment types possible.