LONDON (Reuters) – The London Stock Exchange

said its pan-European share trading arm Turquoise will offer trading in EU-listed shares on its Dutch platform from the end of next month if there is no agreement on future direct access to the bloc by then.

Brussels is assessing whether to allow Britain’s financial sector to serve EU investors under its “equivalence” system, which checks if UK market rules are as robust as those in the EU.

After Britain left the EU last January, direct access to the single market under transition arrangements ends on Dec. 31.

“Turquoise can confirm that it is planning on invoking its Brexit contingency plans on Monday 30 November 2020, unless relevant equivalence decisions to allow cross-border services between the EU and UK are agreed prior to this date,” the UK exchange said in a statement. All shares would still be available for trading in London as well.

The LSE set up its Dutch hub as insurance against no direct access to EU investors.

CBOE, the biggest pan-European share trading platform, which is based in London, has also set up a hub in Amsterdam that is already open for business but with little trading so far, while London-based Aquis Exchange has set up its Brexit hub in Paris.

Without equivalence, EU investors would have to trade EU companies inside the bloc, even though many of them are heavily traded in London.

Banks have warned that fragmenting trading liquidity would make markets less efficient for users.

(Reporting by Huw Jones; Editing by Susan Fenton and Mark Potter)

Copyright 2020 Thomson Reuters.

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On the Macro

It’s a busy week ahead on the economic calendar, with 68 stats in focus in the week ending 16th October. In the week prior, 53 stats had been in focus.

For the Dollar:

It’s a relatively busy week ahead on the economic data front.

On Monday and Tuesday, September inflation and wholesale inflation figures are due out.

The focus then shifts to manufacturing sector activity and labor market numbers on Thursday.

Expect the Philly FED Manufacturing PMI for October and the weekly initial jobless claims to impact.

At the end of the week, retail sales and industrial production figures are due out, along with October consumer sentiment numbers.

Expect the retail sales and prelim Michigan consumer Sentiment figures to have the greatest impact.

Away from the calendar, the next Presidential debate on 15th October will also provide direction. That is assuming that Trump decides to attend…

The Dollar Spot Index ended the week down by 0.84% to 93.057.

For the EUR:

It’s also a relatively busy week ahead on the economic data front.

On Tuesday, ZEW Economic Sentiment figures for Germany and for the Eurozone are in focus.

Expect some EUR sensitivity to the numbers on the day.

The focus will then shift to Eurozone industrial production figures for August, due out on Wednesday.

At the end of the week, the Eurozone’s trade figures for August will also garner some interest.

Finalized inflation figures for member states and the Eurozone are also due out. Barring deviation from prelims, however, the numbers should have a muted impact on the EUR.

On the monetary policy front, ECB President Lagarde is scheduled to speak on a number of occasions in the week. Expect any forward guidance or views on the economy to influence.

Away from the economic

LONDON (Reuters) – Britain’s government on Sunday urged businesses to prepare for the end of the Brexit transition period, saying that they need to take action whether or not a trade deal with the European Union is clinched.

Prime Minister Boris Johnson has said Britain won’t extend the transition period, which ends on Dec 31, and that progress must be made to bridge significant gaps between the two sides in the coming days if a deal is to be struck.

The business ministry argues that most of what businesses need to do is the same regardless of the outcome of the negotiations and has planned a series of sector specific webinars in October.

“With just 81 days until the end of the transition period, businesses must act now to ensure they are ready for the UK’s new start come January,” said business minister Alok Sharma, who will write to businesses regarding the changes.

“There will be no extension to the transition period, so there is no time to waste.”

Businesses needed to do things like ensure staff register for residency rights and prepare for customs procedures when trading with the EU, the government said.

The United Kingdom formally left the EU on Jan. 31, but more than four years since voting 52%-48% for Brexit in a 2016 referendum, the two sides are haggling over a trade deal to take effect when informal membership ends on Dec. 31.

The two chief negotiators, the EU’s Michel Barnier and Britain’s David Frost, say they are inching towards a deal ahead of an Oct. 15 deadline, but that important gaps remain on fishing, level playing field issues and governance. Both sides have planned for a no-deal scenario.

(Reporting by Alistair Smout; Editing by Christina Fincher)

Copyright 2020 Thomson Reuters.

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(Bloomberg) — The U.K.’s two financial regulators urged the industry to finish final preparations for a potentially messy no-deal Brexit.



a train that is sitting in front of a large city: A London bus crosses Waterloo bridge against a backdrop of skyscrapers including 22 Bishopsgate office tower, the Leadenhall building, also known as the "Cheesegrater", The Scalpel, and 20 Fenchurch Street, also known as the "Walkie-Talkie" in the City of London, U.K., on Wednesday, Jan. 29, 2020. The European Union will consider about 40 equivalence decisions this year, determining how much equity, fixed-income and other investment banking business can remain in London and still serve EU clients.


© Bloomberg
A London bus crosses Waterloo bridge against a backdrop of skyscrapers including 22 Bishopsgate office tower, the Leadenhall building, also known as the “Cheesegrater”, The Scalpel, and 20 Fenchurch Street, also known as the “Walkie-Talkie” in the City of London, U.K., on Wednesday, Jan. 29, 2020. The European Union will consider about 40 equivalence decisions this year, determining how much equity, fixed-income and other investment banking business can remain in London and still serve EU clients.

With negotiations between the U.K. and European Union still facing roadblocks, the Bank of England and Financial Conduct Authority urged finance executives to take further steps to make sure U.K. firms can continue trading stocks and derivatives easily with EU clients.

“Market volatility and disruption to financial services, particularly to EU-based clients, could arise,” the authorities wrote.

While many large clients have done the necessary work to shift derivatives contracts to banks’ EU divisions, there is still work left to do, according to the letter to executives. A last-minute move could create operational risks and “could also amplify any existing market volatility.”



a train that is sitting in front of a large city: A London bus crosses Waterloo bridge against a backdrop of skyscrapers including 22 Bishopsgate office tower, the Leadenhall building, also known as the "Cheesegrater", The Scalpel, and 20 Fenchurch Street, also known as the "Walkie-Talkie" in the City of London, U.K., on Wednesday, Jan. 29, 2020. The European Union will consider about 40 equivalence decisions this year, determining how much equity, fixed-income and other investment banking business can remain in London and still serve EU clients.


© Bloomberg
A London bus crosses Waterloo bridge against a backdrop of skyscrapers including 22 Bishopsgate office tower, the Leadenhall building, also known as the “Cheesegrater”, The Scalpel, and 20 Fenchurch Street, also known as the “Walkie-Talkie” in the City of London, U.K., on Wednesday, Jan. 29, 2020. The European Union will consider about 40 equivalence decisions this year, determining how much equity, fixed-income and other investment banking business can remain in London and still serve EU clients.

The regulators also want firms to give customers ample notice if their service might be cut off or reduced once the Brexit

Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv

LONDON, Oct 9 (Reuters)Sterling edged up against the dollar but fell against the euro after worse-than-expected UK GDP data, while investors focused on Brexit negotiations where the “mood music” was seen to have improved.

Britain’s GDP rose 2.1% in August – the slowest increase since the economy began to recover in May from its record slump. Much of what growth occurred was down to the government’s one-off restaurant subsidy scheme.

The data had limited impact on the pound, which was in its third consecutive day of gains against the dollar and only slightly down versus the euro.

Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets, said that the GDP data, which calls into question the idea of a V-shaped recovery, had little effect on the market since it was already expected that local lockdown measures would limit economic growth in the fourth quarter.

At 0808 GMT, sterling was at $1.2953, up 0.2% on the day against the dollar. The greenback was heading for a second week of losses as investors increased bets that Joe Biden would win the U.S. presidential election on Nov. 3 and offer fiscal stimulus afterwards.

Versus the euro, the dollar was up around 0.2%, at 91.05 pence per euro EURGBP=D3.

The week has proven volatile for the British currency as Britain and the EU negotiate their future relationship. Hopes that a no-deal Brexit will be avoided have risen in recent days, ahead of the European Council meeting on Oct. 15-16.

Both sides in negotiations have said a deal is possible, but the pound has ricocheted on contradicting headlines about how much progress has been made.

“The last two weeks have seen some brutal whipsawed price