Market fragmentation debate to be dominated by Brexit – 11th November 2019

Brexit is at the epicentre of recent discussions to address market fragmentation and the EU’s treatment of third countries and solutions are unlikely until a successful outcome has been agreed, a top regulator said. Ashley Alder, chief executive of the Hong Kong Securities and Futures Commission (SFC) and chairman of the International Organisation of Securities Commissions (IOSCO), told the ASIFMA annual conference in Tokyo on Thursday there was little more regulators could do to address market fragmentation until the “highly charged politics” around Brexit raged on. Britain is due to leave the EU on October 31. “The IOSCO board will discuss [market fragmentation] again at the end of October,” he said. “The question for us is what more can we do. I want to be optimistic, but I think it would be practically quite difficult to move cross-border regulation as a topic from a bilateral to a multilateral level until a few things happen — the principal being the politics around Brexit.”