The FCA has set out its approach to the share trading obligation (STO) at the end of the Brexit transition period, if mutual equivalence is not agreed. The approach is intended to ensure open markets and competition between trading venues globally.
The FCA will use the Temporary Transitional Power (TTP) to avoid disruption. UK market participants will continue to be able to access any EU trading venue post-Brexit (provided that the venue has ensured it has the relevant regulatory permissions).
They will need to be:
- a UK Recognised Overseas Investment Exchange
- using the temporary permissions regime, or
- certain that their activities meet all the conditions required to benefit from the Overseas Persons Exclusion.
The FCA will publish transitional directions before the end of the year to implement these changes.