Some of the concern that lies for UK financial services from the Europe's proposals of reforms:
- European Market Infrastructure regulation
Proposal to overhaul the infrastructure fro trading and processing OTC derivative will hurt LSE as much of the clearing is based in London.
- Mkts in financial instruments directive and regulation II
Sweeping rules to reign in OTC equities and derivatives will move the trading activity onto formal exchanges in the interest of transparency.
Backed by UK for most part, its has big implication for city of London – home to wholesale financial mkts. MIFID II cracks down on rapid automated trading, hitting traders in London and Amsterdam.
- Capital requirements directive IV
The EU vehicle for implementing the Basel III banking accords. Controversial proposals such as “single rulebook” for Europe with a capital ceiling, which stripped UK regulators to set higher standards. Easing capital definitions that benefit some French and German banks.
- European securities and markets authority
ESMA is pan-European watchdog in Paris that tilts the balance of regulatory power away from UK national regulators.
- Financial transaction tax
Taxes such as Tobin tax, is a move that will raise the revenue away from London, damaging the UK economy.
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