The EU Share Trading Obligation (STO) Post-Brexit – Fragmenting Markets

ESMA has published a statement confirming its guidance on the application of the STO following the end of the Brexit transition period, subject to one clarification; the STO will not apply to shares with an EEA ISIN traded on a UK trading venue in UK pound sterling (GBP) at the end of the transition period.  However, as ESMA’s commentary notes, very few shares are likely to be in scope of this clarification.