David Howson on equivalence
From Shift from UK to EU unprecedented in size, but not unpredicted: CBOE Europe president · · CNBCInternationalNews
“We assume then that this is basically just about market share and equivalence won't come as long as there is a desire in continental Europe to take business from London.”
On , David Howson, Executive Vice President & Global President at Cboe Global Markets Inc, spoke about equivalence during Shift from UK to EU unprecedented in size, but not unpredicted: CBOE Europe president on CNBCInternationalNews.
About David Howson
In February 2021, David Howson, then President of Cboe Europe, discussed the post-Brexit shift of share trading in EU-listed names from the UK to the Netherlands. He described the move as "unprecedented in its size" and occurring overnight on January 4, but stated it "wasn't unpredicted" and had been signaled during Brexit negotiations. Howson noted that Cboe had launched a Dutch venue in October 2019 to prepare for the transition, and he described the shift as "pretty much permanent," adding that it would take "a major catalyst" for the industry to move European share trading elsewhere. Howson also addressed the lack of equivalence granted to the UK for share trading, saying he saw "no likelihood of an equivalence deal" and that "nothing really changed from the UK being equivalent on paper." He stated there was "no incentive" for the European Commission and ESMA to provide equivalence given the trading had moved to Europe. Responding to comments from former LSE boss Xavier Rolet, who characterized the loss of share trading as a "sideshow" compared to derivatives clearing, Howson argued that equity capital markets are "fundamental for democratizing wealth creation" and "at the heart of any financial services ecosystem," and should not be dismissed as a non-event.