LONDON, September 19, 2017 /PRNewswire/ —
Dmitry Leus wrote in EU Today in response to an Association for Financial Markets’ (AFM) draft report, seen and reported on by Reuters news agency. He wrote that the draft report findings should be welcomed by those in the banking and investment community
The AFM draft report stated that central banks should be ready to inject cash into the financial markets to calm them after the UK leaves the European Union in 2019.
According to Reuters, the draft report says that regulators, central banks and national governments should continue to support financial market stability between the UK’s departure from the EU and the start of new trading terms. The draft report states: “This may require particular attention during the uncertain period around Brexit, and in particular during the transition, and may involve more regular market communications and targeted support in case of market need, for example, access to liquidity schemes.”
Dmitry Leus wrote: “The AFM are correct in their judgment that this and other measures will be needed to limit disruption. The AFM are also right to recommend a ‘bridging phase’ to avoid short term disruption until new trading terms are ratified, followed by an “adaption phase” for moving to the new terms.”
He added: “The AFM also assert that it is crucial that clarity is provided as soon as possible on a transitional phase and ideally before the end of this year. They want existing market arrangements maintained throughout the transitional period. There have been concerns voiced among the banking community that bankers could have to comply first with a transition period and then the new trading terms. For the AFM, “This means that existing legislation, regulation, permissions and authorisations should continue to be effective during the transitional period”.”
Mr Leus concluded: “It is to be hoped that this practical and intelligent planning makes its way to the Brexit negotiating tables this autumn.”
About East-West Connect
East-West Connect is a London-based forum focused on investment risk and opportunity in Central and Eastern Europe. We provide news and analysis about the investment and economic climate of the region.
East-West Connect was founded by Dmitry Leus, an entrepreneur and banking and financial services professional. He started his career as FOREX specialist at Russia’s Lesprombank in the mid-90s. He later became Head of International Settlements of the bank, and in 2000 began running the South-West section of Lesprombank. In 2002, he was appointed Chairman of the Russian Depository Bank. In 2006 he founded Zapadny bank, where he worked as Chairman until late 2013.