No-Deal Brexit Stock Market Mess Will Be London's Fault, EU Says
(Bloomberg) -- The U.K. would be to blame for chaos in equity markets that results from a no-deal Brexit, according to a top European Union regulator who called on Britain to do more to avert a mess.
Steven Maijoor, chairman of the European Securities and Markets Authority, said recent revisions to EU policies will help smooth trading if the U.K. leaves the bloc without a withdrawal agreement. However, he said the share-trading rules “will fragment markets” across borders.
“I regret that result very much,” Maijoor said in a speech in Dublin. “It is important to point out that this is inherently related to the U.K.’s decision to leave the EU and the risk of a no-deal Brexit.”
Maijoor said officials in London must explain whether they will restrict where U.K. firms can trade stocks and shouldn’t wait until October, when Britain is scheduled to leave. The U.K. Financial Conduct Authority last week said the revised EU policies would still lead to disruption in European markets and that the two sides should work together to allow trading to continue uninterrupted.
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