Britain unveils new Brexit masterstroke at hand City win in £2.4tn market
The City of London is braced for a win, because the UK plans to overturn inherited European Union legal guidelines to spice up competitiveness.
The Treasury has revealed plans to overturn a ban on betting towards sovereign debt, inherited from the EU.
It can also be planning to overturn a requirement to reveal sizeable brief positions in gilts to the regulator.
The UK Treasury has argued that scrapping the EU restrictions will enhance liquidity within the £2.4trillon gilt market.
In an business session launched right this moment, the division mentioned: “Short selling of sovereign debt and owning sovereign CDS generally contribute to the healthy functioning of sovereign debt markets, promoting liquidity and facilitating price discovery.”
The reforms are a part of a post-Brexit effort to loosen up monetary regulation inherited from the EU with the intention to enhance the competitiveness of the City of London.
The modifications have been branded the “Edinburgh reforms”.
Speaking in his annual Mansion House speech yesterday, Chancellor Jeremy Hunt mentioned the UK plans to scrap “almost 100 pieces of unnecessary retained EU law”.
He mentioned Brexit offers the UK “autonomy” to rely by itself regulators, permitting the UK to develop into a pacesetter within the “industries of the future”.
He mentioned the UK’s monetary companies sector shall be “ready to innovate faster with regulators willing to support them as they do”.
Mr Hunt added: “We have one of the most robust regulatory regimes and some of the best regulators in the world.
“Brexit offers us the autonomy to place their abilities to even higher use as we search to develop into leaders within the industries of the long run.
“So I am delighted that we have just last month passed into law the landmark Financial Services and Markets Act, which will ensure our regulators have an appropriate focus on growth and competitiveness alongside their wider responsibilities.”
He added: “The Act also unlocks wholesale reform of our approach to regulation and today I can announce that we are commencing repeal of almost 100 pieces of unnecessary retained EU law, further simplifying our rulebook whilst retaining our high regulatory standards.
“Alongside this, final month I used to be delighted to signal the brand new UK-EU monetary companies Memorandum of Understanding as we construct a brand new relationship with our European companions.
“We are working closely with the Bank of England to reflect on lessons from recent events to ensure the UK has the best possible arrangements in place to improve continuity of access to deposits when a bank fails even if it is not a systemically important one.”