Even though the EU knows the UK system like the back of their hand, they still say the City of London doesn’t meet its standards.
The EU has reacted like this to extinguish Rishi Sunak push for deregulation on the Financial Markets in the UK. Rishi Sunaks plan is to make Britain the most attractive place for financial and tech businesses. The EU fear this and react by pulling the plug on giving the UK equivalence status.
Boris Johnson spokesperson said: “The UK exchanges remain some of the biggest and deepest in the world, and we continue to believe in open, global markets and firms’ ability to choose where to trade.
“Despite the fact that we have supplied all of the necessary paperwork and are one of the world’s most preeminent financial centres with a strong regulatory system, the EU have still not granted us full equivalence.
“This has meant that a number of EU shares that were previously traded on UK venues have moved to EU venues on advice of the European regulator.
“Fragmentation of share trading across financial centres is no one’s interest and we remain open to discussions with the EU about this.”
All this backhanded manoeuvring by the EU is because they fear the UK’s competitiveness globally. If the UK becomes a champion for business and free trade (‘which it will), the EU will have a stampede to the exit door, and this is what they fear.