City Welcomes UK Call For Brexit Transition
— AFME (@News_from_AFME) September 22, 2017
Following the speech made by the UK Prime Minister today in Florence, Simon Lewis, Chief Executive at the Association for Financial Markets in Europe (AFME) said:
“We welcome the UK Government’s call today for a ‘time-limited implementation period’ after March 2019. We believe that transitional arrangements will be vital to give businesses, banks and investors time to adjust in order to avoid damaging cliff edge effects. They are also necessary to support the objectives of an orderly withdrawal, ensuring financial stability and the prosperity of both the EU27 and the UK.
“We urge the negotiators to reach agreement as soon as possible on the items under discussion in phase one of the negotiations in order to have clarity on transitional arrangements.”
— TheCityUK (@TheCityUK) September 22, 2017
Miles Celic, Chief Executive Officer, TheCityUK, said: “The Prime Minister has set out a clear path – one which will help deliver some much-needed certainty for business. In calling for a time-limited transitional period under the existing rules and structures, she has echoed our industry’s priorities and the calls of businesses on both sides of the Channel.
“Similarly, since the start of the Brexit negotiations, we have been clear on the benefits of mutual regulatory recognition. It’s very positive to see that the British Government supports this principle – one which is in the best interests of all parties.
“The ball is now firmly in the EU’s court and the clock is ticking. Any further delay in progressing negotiations risks additional and unnecessary economic disruption for customers across Europe.”
In reaction to the UK Prime Minister, Theresa May’s speech in Florence today, Tim Graf, EMEA head of macro strategy at State Street Global Markets, said:
“After great anticipation, Prime Minister Theresa May’s Florence speech offered few specifics and even fewer surprises. The main takeaway for markets is a more formally expressed desire to pursue a transitional arrangement of ‘around two years’, from when the time limit following the triggering of Article 50 expires, presumably beginning from March 2019. For the near-term, negotiations may likely be hampered by the lack of detail offered on the main items for discussion, namely the Irish border question, the ultimate financial settlement with the EU and the rights of EU citizens. European Commission Chief Negotiator Michel Barnier was not given much new to work with on these points. While the pound weakened and UK rates fell during the speech, these moves were quite muted, perhaps an appropriate reaction to a speech carrying very little new information.”
Source: State Street
European firms could operate temporarily in the UK after Brexit while seeking full authorisation.
The total value of UK financial services exports remained stable in 2020.
Temporary equivalence was set to expire on June 30, 2022.
The Bank has new powers for reviewing CCPs following Brexit.
Restricting access to London CCPs would result in collateral damage for EU banks and end users.