The Treasury said it will not implement the SDR from February 2021, but will consider the future approach of the rules to the UK’s own post-trade framework.
As temporary permissions run out at the end of the year, managers are expected to seek out Supermancos in order to market their funds in Europe.
As UK and European regulators clash over post-Brexit share trading rules, it could spell further divergence for post-trade arrangements.
Global Custodian looks at the recent MOUs’ between the UK and EU financial regulators and their implication for securities markets.
Regulators are hoping to harmonise the safekeeping requirements for UCITS and AIFMD funds, however this could mean stricter record-keeping requirements.
Euroclear announced plans for a new Irish CSD as it continues its preparation for the UK’s exit from the EU.
The European Commission had referred Ireland to the European Court of Justice for failing to recover from the Apple illegal State aid.