Britain left the EU at the end of January but has full access to the bloc under a transition period that runs until the end of December. London and Brussels blamed each other last week for missing a June 30 deadline for assessments on financial market access from January. Future direct EU access will depend on whether Brussels deems UK regulation to be “equivalent” to standards in the bloc.
“COVID-19 has the potential to disrupt Brexit planning including impacting client readiness, as well as potentially affecting the ability of firms to relocate staff to other jurisdictions,” AFME said in a statement.
AFME said ensuring that EU investors can continue using clearing houses in London needed addressing before the end of September.
Two-way access in stock and derivatives trading was also needed to avoid disruption, AFME added.
AFME called for a formal framework for UK and EU regulators to iron out differences that could jeopardise access.
“This is particularly important in the context of the fast-evolving legislative agenda in the EU and the UK with a number of significant financial services files being proposed, due to be implemented, or under review in the second half of this year and the first half of 2021,” AFME said.
The EU’s chief Brexit negotiator Michel Barnier said last week that financial firms must get ready for big changes in January.
“We will only grant equivalences in those areas where it is clearly in the interest of the EU, of our financial stability, our investors and our consumers,” Barnier said.
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FTSE 100 LIVE: Banks have urged UK and EU to sort market access
5.03am update: Asia shares climb as China blue chips hit five-year peak
Asian shares scaled four-month peaks on Monday as investors counted on super-cheap liquidity and fiscal stimulus to sustain the global economic recovery, even as surging coronavirus cases delayed re-openings across the United States.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1 percent to its highest since February.
Eyes were on Chinese blue chips, which jumped 3%, on top of a 7 percent gain last week, to their loftiest level in five years. Even Japan’s Nikkei, which has lagged with a soft domestic economy, managed a rise of 1.3 percent.
“We think there is a case for raising tactical allocation on Asian equities in the context of global equity portfolios,” wrote analysts at Nomura in a note.
“We see a number of catalysts that could drive Asia ex-Japan (AeJ) equities’ outperformance over US equities in the near term,” they added. “Better COVID-19 trends and mobility data in economies/markets that dominate the AeJ index should translate into faster economic recovery vs the US”