(Adds more detail, background)
By Huw Jones
LONDON, Oct 12 (Reuters) - The European Union's securities
watchdog said it expects to make a statement soon on where
shares listed in the bloc must be traded after Britain's full
departure from the European Union in December.
It was important for market participants to have clarity on
where they can trade shares, Steven Maijoor, chair of the
European Securities and Markets Authority (ESMA), told the
European Parliament.
Britain left the bloc last January but still has full access
to the single market until Dec. 31 under transition
arrangements.
Brussels is assessing whether to grant "equivalence," or
continued full access for UK share trading platforms, to EU
investors or cut off the City of London.
Without equivalence, EU investors would trade EU shares
inside the bloc under its share trading obligation (STO) rule.
EU states are divided over whether to make the STO more
flexible given that investment funds in the bloc are heavy users
of deep liquidity in London trading platforms.
"Ultimately, you would prefer to have equivalence here, but
clearly I fully understand that is difficult for the Commission
as that would also require clarity on how in this area the UK
would like to change its laws and regulations," Maijoor said.
Brussels wants Britain to say if it will diverge from
current trading rules inherited from the bloc and thereby no
longer be equivalent to maintain access.
"We are discussing this internally ... in close coordination
with the European Commission," Maijoor said.
ESMA's previous statement on the STO and other announcements
on EU securities rules would serve as an "anchor," Maijoor said.
The London Stock Exchange said on Monday it would offer
trading in EU-listed shares on its new Amsterdam hub from the
end of November if there is no equivalence decision by then to
allow continued trading in London.
(Reporting by Huw Jones; Editing by Toby Chopra and Steve
Orlofsky)