Thread by @KafkasCastle1

Just going through some of these EU preparedness notices on Brexit THREAD

1/ Accounting. UK accountants no longer considered statutory auditors - oh no! - ... "for the purposes of the [EU's] Statutory Audit Directive" or SAD :)
ec.europa.eu/info/sites/inf…

2/ But the Satutory Audit Directive is a classic EU double negative legislation. It only forbids EU member states from not recognising auditors that don't meet the SAD requirements. Sad
eur-lex.europa.eu/legal-content/…

3/ Fund management. Directive confirms retail activity of managing the fund, ie the investment vehicle and marketing are affected by Brexit. These activities are tiny ec.europa.eu/info/sites/inf…

4/ But delegated fund management is not affected. All that's needed is for the Luxembourg CSSF or Irish Central Bank have a cooperating agreement with the FCA. So wholesale delegated fund management NOT affected

5/ Dublin & Luxembourg compete to launch funds, so if one of them were not to cooperate with the FCA they would be handing the business on a plate to the other. Or else opening the door for Malta. I.e. suicide

6/ Trading venues. Oh no, UK trading venues will no longer be eligible (no pun intended, see below). Help, help!
ec.europa.eu/info/sites/inf…

7/ But footnote 11 to this claim refers to Mifir

8/ And in MIFIR it says 3d country firms "may" provide investment services to "eligible counterparties"

9/ Eligible counterparties are ... professional investment firms, such as fund managers, or banks, or indeed the finance department of big firms. Virtually 100% of all EU customers trading on UK venues are eligible counterparties

10/ If this surprises you, then maybe that lobotomy experience on groupon wasn't such a good idea. Can EU banks buy swaps in New York? Yes of course

11/ Can EU banks trade Yen for their clients in Tokyo? Yes, of course they can. Can French fund manager Carmignac Géstion trade equities on the Sri Lankan stock exchange? Yes

12/ Are all these venues 3d party venues? Yes. Yes. Yes (to quote Meg Ryan). So will Brexit stop EU banks or EU fund managers (ie eligible counterparties) trading in Swaps or shares in London? No. No. No. (to quote Mags Thatcher)

13/ I want to thank @Williamw1 for pointing me toward these links, just before he blocked me (@semperfidem2004). They prove my point entirely. Wholesale City activities are not affected by Brexit

14/ The superiority ("better things to do" "bedtime reading") & swearing are typical of people with those views. As is the abject failure to understand the linked material

15/ Here's more from MIFIR. All of the EU desks trading Swaps are either in London or have always traded in London. Therefore they will be covered by this exemption

16/ Why are the trading activities impacted by Brexit so tiny? Because EU's MIFIR effectively only covers small businesses or individuals

17/ Small businesses or individuals don't trade direct with Goldman Sachs in London. They trade through Rabobank or Caisse des Dépots or whatever their local bank is

18/ So if you're a bank or a fund manager you trade direct - but you're an eligible party & so Brexit doesn't prevent you from trading in London

19/ If you're an individual or a small business you're not an eligible party & so Brexit does prevent you from trading in London - but you weren't trading directly in London anyway, you used a local player ...

20/ .... & that local player is an eligible counterparty & so can place trades on your behalf in London

21/ There is a small amount of direct to EU customer business in London. It accounts for all of the 4,000-5,000 (<0.5% total City jobs) job loss announcements due to Brexit wp.me/p6sAEp-3kV