On December 2, the UK’s Financial Conduct Authority (FCA) published a draft transitional direction alongside an explanatory note, for share trading obligation under the Markets in Financial Instruments Regulation (600/2014) (MiFIR) in preparation for the end of the Brexit transition period (the Direction).

The Direction will allow UK firms to continue trading all shares on EU trading venues and systematic internalisers (SIs), if they choose to do so and where the regulatory status of those venues and SIs permits such activity (see the November 6, 2020 edition of Corporate & Financial Weekly Digest). The FCA hopes the Direction will mitigate the compliance disruption that may arise with onshored obligations.

The Direction will take effect following the end of the transition period at 23:00 on December 31 under Part 7 of the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (SI 2019/632) and may be subject to amendments or revocation.

The FCA consulted with HM Treasury, the Bank of England and the Prudential Regulation Authority to draft the Direction.

The Direction is available here.