Aquis Exchange Plc, London’s second largest European equity trading venue, has seen almost all of its business move to the European Union on its first trading day since Brexit.
CEO Alas der Haines told Bloomberg TV on Monday that 99.6% of European equity trading had moved to a parallel venue in Paris.
“Europe clearly won the battle for share buybacks,” he said. “This shift is a grand own goal, as the UK is now losing a very strong position in trading European equities in London,” he said.
The City of London lost access to the Single Market on 31 December and the EU does not allow investors in the block to trade shares in companies such as Airbus SE and BNP Paribas SA in the UK ..
Haynes said he was pessimistic about the EU granting trade rights through an equivalent process because of the Swiss issue on the same issue in 2019. After Boris Johnson signed the Brexit trade agreement on December 24, both sides outlined the March deadline for the Memorandum of Understanding. Understanding the regulation of financial services, which is a major driver of the UK economy.
“The story of equivalence that will be recognized in the coming months will take place in the land of dreams,” Haynes said. “It will take years to reach the same level.”
According to Haynes, the UK will change rules to attract issuers and investors to the UK market, but it will not necessarily allow EU equity trading in London.
“This horse has been bolted so far and is now in another stable,” he said. “To get it back, we have to do something quite revolutionary.”
© 2021 Bloomberg LP
Brexit pushes nearly 100% of European stocks out of UK venues
https://www.moneyweb.co.za/news/international/brexit-pushes-almost-100-of-europe-share-trading-off-uk-venue/ Brexit pushes nearly 100% of European stocks out of UK venues