The European Securities and Markets Authority ("ESMA") provided additional guidance on the impact of a no-deal Brexit on the Markets in Financial Instruments (MiFIR) trading obligations for shares in the event of no equivalence decision for the UK. ESMA recognized that a "no-deal" Brexit scenario is creating considerable uncertainty amongst market participants. The additional guidance explains (i) the distinction in the nomenclature between EU27 shares and GB shares and (ii) which GB shares will be deemed to have their main pool of liquidity in the UK and which will be deemed to be in the EU27 only.
ESMA also issued a list of International Securities Identification Numbers ("ISIN") that would be subject to the trading obligation for shares. The list, compiled from 2018 data, is meant to clarify the application of the trading obligation for certain shares with an EU27 or GB ISIN.
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