ESMA’s application of the trading obligation for shares following a no-deal Brexit
The European Securities and Markets Authority (ESMA) has published a statement on the impact on the MiFIR trading obligation for shares (TO) of the United Kingdom (UK) leaving the European Union (EU) on 29 March 2019 without a withdrawal agreement (no-deal Brexit), and without an equivalence decision for the UK by the European Commission (EC).
ESMA is issuing this statement in response to requests from many market participants for additional clarity and certainty on the application of the TO for shares in the absence of an equivalence decision by the EC.
ESMA recognises that its approach may lead to an overlap of trading obligations for a number of shares and potentially a greater level of fragmentation of trading should the UK apply an identical approach. However, the absence of any clarification by ESMA would by default lead to the application of the MiFIR TO to every share traded in the EU27. ESMA’s approach seeks to limit potential market disruption while also ensuring Article 23 MiFIR is adequately and consistently applied across the EU.
Reflecting these aspects, ESMA’s statement contains guidance on the application of the TO for shares in a no-deal Brexit scenario. To effectively inform market participants, ESMA is publishing:
- Public Statement – Impact of Brexit on the trading obligation for shares; and,
- List of ISINs – Following the approach outlined in the statement, the list of instruments which would be subject to the TO for shares.
ESMA wishes to highlight that the guidance provided in the public statement should only be applied in case of a no-deal Brexit occurring on 29 March 2019.
Should the timing and conditions of Brexit change, ESMA may adjust its approach and inform the public of any changes as soon as possible.
Public Statement Trading Obligation Shares
Latest News from
The Conference on the Future of Europe gets green light from the Council08/03/2021 16:33:00
The Council of the EU gave its approval to the joint declaration on the Conference on the Future of Europe, aimed at involving citizens in a wide-ranging debate on Europe's future in the coming decade and beyond, including in the light of the COVID-19 pandemic.
Statement by President von der Leyen following her phone call with President of the United States Joe Biden08/03/2021 15:25:00
Statement given recently (05 March 2021) by President von der Leyen following her phone call with President of the United States Joe Biden.
EU adopts €130 million support package for Syrian refugees and local communities in Jordan and Lebanon08/03/2021 13:25:00
The European Union, via the Regional Trust Fund in Response to the Syrian crisis, recently (04 March 2021) adopted a €130 million assistance package to support Syrian refugees and local communities in Jordan and Lebanon in key areas such as social protection, healthcare services or waste management.
International Women's Day 2021: COVID-19 pandemic is a major challenge for gender equality08/03/2021 12:38:00
Tthe Commission recently published its 2021 report on gender equality in the EU, that shows the negative impact of the COVID-19 pandemic on women.
EU and U.S. agree to suspend all tariffs linked to the Airbus and Boeing disputes08/03/2021 11:33:00
The EU and U.S. recently (05 March 2021) agreed to suspend all retaliatory tariffs on EU and U.S. exports imposed in the Airbus and Boeing disputes for a four-month period.
The European Pillar of Social Rights: turning principles into actions05/03/2021 10:38:00
The Commission yesterday set out its ambition for a strong Social Europe that focuses on jobs and skills for the future and paves the way for a fair, inclusive and resilient socio-economic recovery. T
Council approves €330 billion cohesion legislative package05/03/2021 09:25:00
The EU is making available over €330 billion for regional and local projects in 2021-2027 through the structural funds to help reduce economic disparities and boost the recovery from the pandemic.
Pay Transparency: Commission proposes measures to ensure equal pay for equal work05/03/2021 08:15:00
The European Commission yesterday presented a proposal on pay transparency to ensure that women and men in the EU get equal pay for equal work.
EIB provides €7.5 million to Austrian artificial intelligence software innovator Cortical.io04/03/2021 16:33:00
The European Investment Bank (EIB) is providing €7.5 million to Cortical.io AG, an Austrian software company developing innovative artificial intelligence technology based on a Natural Language Understanding (NLU) approach that can interpret and process human language text.