Cboe Operates Same Equity Trading Services In UK And NL
Cboe Europe, a pan-European stock exchange operator and a division of Cboe Global Markets, can confirm it is prepared for new restrictions on the trading of UK and EEA-listed securities, which are set to take effect when the UK’s Brexit transition period ends on 31 December 2020.
Although the EU and the UK have provisionally agreed a trade deal to take effect at the end of the UK’s transition period, it does not presently cover the whole of the financial services sector. New restrictions on share trading will therefore come into force when trading begins on 4 January 2021, preventing EU firms from accessing UK venues in EEA-listed securities.
Cboe Europe is prepared for this scenario having enacted its Brexit contingency plan in October 2019, when its Netherlands-based venue (‘Cboe NL’) went live offering trading in EEA-listed securities. Participants representing close to 100% of Cboe Europe’s average daily trading activity are already connected to Cboe NL and able to move their activity in EEA-listed securities onto this venue as they wish. Cboe NL has also UK Registered Overseas Investment Exchange status, allowing it to be accessed by UK participants post-Brexit.
Cboe continues to operate its existing exchange in the UK (‘Cboe UK’), offering trading in UK and EEA-listed securities. Cboe is planning to re-introduce Swiss-listed securities on its UK venue in early 2021, once the UK and Swiss governments have taken the necessary steps to recognise one another’s regimes as equivalent to allow for the removal of the current prohibition of trading Swiss shares on UK venues.
David Howson, President of Cboe Europe, said: “We have been prepared for this political outcome for some time, having had our Netherlands-based venue operational since October 2019. We are well-positioned to continue to service our customers across Europe post-Brexit, helping to ensure the principles of competition, choice and innovation remain alive in European equity markets.”
Cboe is operating the same equity trading services at both its UK and Netherlands venues, including lit and dark order books, Cboe Europe Periodic Auctions, Cboe Closing Cross (3C) and Cboe LIS.
Cboe NL is also expected to be home to Cboe Europe Derivatives, a new derivatives exchange expected to go live in the first half of 2021, subject to regulatory approval, offering trading in futures and options based on six key European equity indices.
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.
The review is an opportunity to recalibrate MiFID II regulations post-Brexit.