The FCA stands up against ESMA's share trading rules

The UK's FCA regulatory agency has declared disagreement with ESMA's harsh regulations regarding the stock market (which would be applicable in the event of a Brexit). 

Yesterday, the Financial Conduct Authority acknowledged that the European Securities and Markets Authority has toned down its demands, to pretty much everyone's relief.

European brokers will be able to trade British shares in the United Kingdom even if Brexit plans fall apart. However, it's likely that the new requirements are still going to be implemented.

Negative for Europe, negative for the United Kingdom

These developments are likely to become an issue for tradeable companies as well as for the share exchanges located in the United Kingdom.

Although the Financial Conduct Authority would like to support local companies, this is still bad news for non-UK companies located in Europe, as share trading is still more liquid in the United Kingdom.

A paradoxical situation thus arises: European financial companies wouldn't be able to trade the shares of European companies listed on the UK Stock exchange.