FCA: UK stocks will be available in the European Union

Despite Brexit, the shares of British companies will be tradable throughout the European Union. Financial Conduct Authority However, the (FCA) decided to take the completely opposite path to the European ESMA. Who was right, the market will decide as usual.

The consequences of Great Britain leaving the European Union will be felt by the financial market for a long time to come. And these will have consequences not only for the UK, and even for the European Union, but also for investors from virtually all over the world. The British, however, are doing everything to make them less noticeable to companies and entrepreneurs from their country. Financial Conduct Authority (FCA)  prepared guidelines for trading in shares of British companies in the European Union after an island country leaves the community. In short: no big changes, at least in the plans, are to be made. Within the EU, it will still be possible to trade shares of UK companies without any obstacles.

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FCA believes in the free market

“We put our faith in global competition and an open market that will itself regulate trading in a way that is best for trading financial instruments. We believe in the freedom of companies to choose where to raise capital for their operations and trade in securities, regardless of the currency in which the securities are denominated " - we read in the regulations announced by the FCA.

Therefore, FCA wants joint stock companies to operate on the same terms as before.

The FCA believes in regulation

The British regulator also hopes that the regulations in Great Britain and the European Union will be similar, which will allow for successful cooperation between companies from the EU and Great Britain. However, it does not have to be that way. We got to know the FCA guidelines a week after the documents of the European Securities and Markets Authority (ESMA) were published. Meanwhile, the EU regulator had a different opinion on this subject and emphasized that it would be necessary to limit the sale of shares of European companies in the UK. ESMA has released "Share Trading Bond"that spells out how to trade the shares of European companies within the UK and they hope that  Thanks to this move, it will be possible to rebuild a strong capital market in the European Union.

The British may, however, take advantage of the backlash, which is the use of Temporary Transitional Allowances (TTP), which allow British companies to sell and buy shares in all EU trading venues under the existing rules. Thanks to the TTP, the transition period is to be smoother, regardless of what decisions are made by regulatory authorities.

The FCA wants every British platform that wants to trade shares in the European Union to have the appropriate permission. It will be issued thanks to the British access system for foreign companies, or thanks to special facilities.

Brexit negotiations are still ongoing

At the same time, trade negotiations are underway between the European Union and Great Britain. According to recent reports, the new contract may be ready in the next two weeks, which strengthens the pound.

The situation between Great Britain and the European Union is a real rollercoaster. It is still possible to limit the negative financial and economic consequences of Brexit without an agreement, but they may well be much bigger than everyone has previously thought. British Prime Minister Boris Johnson is undoubtedly unpredictable and even if he is not involved in the daily negotiations, he can break them at any moment in literally one sentence.