Earlier this week, the UK’s Financial Conduct Authority issued this notice which states that UK firms will be permitted to continue trading shares on EU trading venues and systematic internalisers. The approach uses the Temporary Transitional powers (TTP) and has several criteria that must be fulfilled by the venues, including the use of the Temporary Permissions Regime. The notice states that in the absence of mutual equivalence recognition from the EU side, it will be necessary to take a more flexible view of the some the transparency rules under MIFID II.

The FCA’s stance is covered in several articles, including here on the FT site and here on The Trade News. Equivalence from the EU side is still awaited in several areas prior to the end of the transitional phase of Brexit on 31 December 2020. Several of these, for example in relation to the recognition of Regulated Markets for the purpose of the calculation of the EMIR clearing threshold, would have an impact on energy and commodity market participants.