Trading venues not convinced by Brexit equivalence

Author: Olly Jackson | Published: 17 Dec 2018

UK-based trading venues are beginning preparations to set up in the EU, industry sources told IFLR, as the chances of a no-deal Brexit remain possible following the UK Parliament’s lack of support for the agreed deal. But equivalence may not be enough to keep them in the UK.

"We are in process of setting up an multilateral trading facility [MTF] in the Netherlands," said Jason Waight, head of regulatory operations at Market Axess. "From day one it will look very similar to our UK MTF and if there is a hard Brexit, we will move clients onto our Dutch MTF. From a liquidity point of view, everything remains broadly the same."

Even with equivalence agreed, Waight said that they will go ahead with plans to establish an MTF inside the EU. Concerns are that equivalence has a number of limitations including that it can be revoked with little notice and would not...