Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

City of London says access to EU markets not on the cards

Stock MarketsMay 13, 2021 09:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A general view of skyscrapers in The City of London financial district seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls/File Photo

By Huw Jones

LONDON (Reuters) - Britain's financial services sector won't get access to the European Union's markets for the foreseeable future following Brexit, industry officials said on Thursday as a row with France simmers.

Britain fully left the EU on Dec. 31, 2020 and the City of London has been largely cut off from providing services in the bloc.

Billions of euros in daily derivatives and share trading have left the City for the EU and New York, with no sign that Brussels will reinstate UK access under its 'equivalence' regime.

"I don't think equivalence is particularly an issue as we don't think there is going to be any equivalence being granted by the EU," Nick Collier, the City of London's representative in Brussels told the UK Trade and Business Commission of lawmakers and industry representatives.

The EU wants to build up its own capital market, Collier said.

France is seeking to delay the ratification of a cooperation agreement in financial services between the EU and Britain due to disputes over fishing rights. The agreement is seen as helping to rebuild the trust necessary for any future market access.

The EU has only granted equivalence to allow the bloc's banks to continue clearing euro derivatives in London, but only until the middle of next year.

Emma Reynolds, managing director at TheCityUK, which promotes Britain as a financial centre, said the EU was pursuing an agenda of onshoring jobs from the City.

"The big question is have we hit rock bottom? Or are there further restrictions? Our member firms are not optimistic about further equivalence being granted," Reynolds said.

Equivalence would require Britain to avoid diverging from financial rules in the EU, but the Bank of England has warned that the UK should not become a "taker" of the bloc's rules.

"I don't see really the point in the UK cleaving to exactly what the EU is going to do, there isn't that much advantage in that," Reynolds said.

"The advantage to the UK to now being outside the EU is that regulators and the government have that agility to tailor regulation to the UK's market," she added.

City of London says access to EU markets not on the cards
 

Related Articles

Hong Kong grants visa extensions to Cathay pilots
Hong Kong grants visa extensions to Cathay pilots By Reuters - Jun 17, 2021

By Jamie Freed SYDNEY (Reuters) -Cathay Pacific Airways said on Thursday non-local pilots based in Hong Kong had been granted work permit extensions, two weeks after it launched a...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Catholic Man
CatholicMan May 13, 2021 11:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is good news.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email