LSEG’s Turquoise To Invoke Brexit Contingency Plans
LSEG’s pan -European equities trading venue, Turquoise, has issued a market notice on Brexit contingency planning. The following is extracted from the notice:
Turquoise can confirm that it is planning on invoking its Brexit contingency plans on Monday 30 November 2020, unless relevant equivalence decisions to allow cross-border services between the EU and UK are agreed prior to this date. The final go-live decision will be confirmed in due course. In the event Turquoise invokes its Brexit contingency plans, the following will occur:
– European Economic Area (EEA) securities will be made available for trading on the MTF operated by Turquoise Global Holdings Europe B.V. (“TGHE” or “Turquoise Europe”), on Monday 30 November 2020.
– The current instrument universe will continue to be available for trading on the MTF operated by Turquoise Global Holdings Limited (“TGHL” or “Turquoise UK”); and
– Both Turquoise Europe and Turquoise UK will operate the following independent Order Books from Monday 30 November 2020: Turquoise Lit™, TurquoisePlato™ (including Turquoise Plato Block Discovery™ and Turquoise Plato Dark-Lit Sweep™), Turquoise Plato Lit Auctions™. Turquoise Plato Trade At Last™ will launch on Turquoise UK on 19 October 2020 with the intention to launch the same service through an independent Order Book on Turquoise Europe at a later date, subject to regulatory approvals.
24 of the largest financial services firms intend to transfer assets out of the UK ahead of Brexit.
Three UK central counterparties can provide their services in the EU after the end of the transition period.
UK and US finance industries propose closer regulatory cooperation and dialogue.
Financial stability risks could arise from a sudden disruption in the services of UK CCPs.
Changes in delegation could lead to increased costs for investors and retaliation from other domiciles.