Home Market Euronext gets reprieve from new competition rule by blaming Brexit

Euronext gets reprieve from new competition rule by blaming Brexit

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Euronext has become the latest exchange to win a reprieve from a new "open access" competition rule, adding its name to the growing list which have blamed Brexit.

The pan-European exchange was told by regulators in France, Belgium and Portugal that it could delay the implementation of an "open access" rule for derivatives by 30 months, Reuters reported. It is still waiting to hear from the Netherlands.

The rule, part of the second Markets in Financial Instruments Directive (Mifid II), aims to allow investors to choose where to trade and clear their products by preventing exchanges and clearing houses tying this to a specific venue.

Read more: Three of the world's largest exchange groups granted last-minute reprieve from Mifid II futures rules

Euronext becomes the fourth exchange to be granted a waiver, as Deutsche Boerse, the London Metal Exchange and Intercontinental Exchange Futures Europe had their applications accepted yesterday by UK and German regulators.

Like Deutsche Boerse, Euronext blamed Brexit. It told Reuters that as the EU's biggest derivatives trading centre, Britain's departure from the EU may have consequences.

“We need a resolution of the bigger picture before we move into any open access activities in respect of exchange traded derivatives,” a Euronext spokesperson said.

Deutsche Boerse, meanwhile, said Brexit raised concerns about financial stability.

In explaining its decision to grant a reprieve to the London Metals Exchange on Wednesday, the UK's Financial Conduct Authority said that "having taken into account the risks" to the "orderly functioning" of the venue it had "decided to agree a transitional arrangement".

Read more: Day of the Mifids: Controversial EU regulations for the asset management industry finally kick in

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