Brexit: the thorny subject of the double listing of European companies

Posted on Oct 8, 2020 at 6:41 PMUpdated Oct 8, 2020 6:53 PM

Two and a half months from the end of the transition period before Brexit, some discussions turned to arm wrestling. Brussels has just put an end to not receiving a request for flexibility on double quotations. An essential subject for European companies and for investors. “More than 500 companies from continental Europe are listed both on their home market and in London”, explains Antoine Pertriaux, head of research at the consultancy firm Adamantia.

The problem ? From January 1, Great Britain will be considered a third country. However, European investment firms are subject to obligations regarding the trading of listed shares, known as “share trading obligation” (STO). They must have recourse to a European platform to exchange (secondary market) the securities of listed companies (primary market, to raise capital) in Europe.

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