ESMA sets out final position on Share Trading Obligation
The statement outlines that the trading of shares with a European Economic Area (EEA) ISIN on a UK trading venue in UK pound sterling (GBP) by EU investment firms will not be subject to the EU STO.
- The statement outlines that the trading of shares with a European Economic Area (EEA) ISIN on a UK trading venue in UK pound sterling (GBP) by EU investment firms will not be subject to the EU STO.
- This currency approach supplements the EEA-ISIN approach outlined in a previous ESMA statement of May 2019.
- ESMA, based on EU-wide data, regards that such trading by EU investments firms occurs on a non-systematic, ad-hoc, irregular and infrequest basis.
- ESMA however notes that the scope of the UK STO after the end of the transition period remains unclear at this stage.