In the coming months, there will be a busy regulatory plan for wholesale financial markets in the UK and EU. Since both jurisdictions are following their regulatory change ideas and activities, the emerging differences between the multiple elements of the UK and EU frameworks get anticipated to develop an extra layer of the challenge for the active market players in both markets.
Staying updated with the regulatory changes is essential and also highly challenging. And the UK and EU market players should remain aware of a few aspects so that they can plan better and precisely.
Kavan Choksi UK – Market regulations are essential
Kavan Choksi UK, a prominent in the wealth and investment management field, has helped several organizations and entrepreneurs attain professional excellence by leveraging their finances. In recent times, he also shared views concerning the right-wing coalition in Italy. He asserted that the situation is concerning and can result in a tumultuous association between the EU and Meloni, more so with the policies concerning an energy crisis and the sanctions enforced on Russia.
In the UK, one can anticipate witnessing the next phase of the 2021 Wholesale Market Review as consultation on the modifications required in the FCA Handbook and Regulatory Technical Standards. And while this review happens to be one part of the UK initiatives for addressing such elements of the current framework, that gets interpreted as not catering to the needs of the UK markets. Several similar reforms concentrate on the similar problems present in the EU.
Having said that, there are essential differences in the detail. There need to be radical ideas from the UK. Market data is one aspect where the UK is well ahead of the EU. Based on the Financial Conduct Authority (FCA) publication, there is more work happening in the trading domain. Unless you keep yourself up breast, you will not be able to bring in the required changes.
Trading will play an essential part
A few proposals in Wholesale Markets Review are at a consultative stage. However, the expectation is that much of it will get effective in a few forms or another, especially where it can bring about changes in the EU. A few of the headlines are coming up with changes that get made on the equity side, along with the elimination of share trading rules and the double volume cap. Here the latter should get replaced by the capacity of the FCA to manage and intervene all and when it is needed. But the proposed interpretations of the deferrals and waiver regime for non-equity and equity instruments can comprise the necessary changes.
Kavan Choksi UK shares that the proposed elimination of all that gets traded in the trading platform is meaningful. And the maximum difference for the commodity derivatives is what decides the ancillary exemption, with the UK supporting the qualitative approach in the EU. However, one needs to wait to check the details. It is also essential to check out the more minor differences to understand the bigger picture in the days to come.
