As member of the EU, Britain championed “open access” rules, to let buyers and sellers of listed derivatives select who should clear their trades rather than being forced to use a subsidiary of the exchange. Now, after the exit, the finance ministry says the rule should not apply in Britain.
According to this Reuters article published Wednesday, the British finance ministry is not finding it appropriate to apply the rules on its own, as they were designed to improve EU cross-border capital markets.
Notably, the decision relates to exchange-listed derivatives only, and does not affect Britain’s support for choice in clearing stocks or off-exchange traded derivatives. These should continue to operate as normal, the ministry said explicitly.