Rules May Bar Europeans From Trading Asian Indexes

Firms may cut back investment in Asia, according to Asifma
More than 55 non-European gauges are affected by changes

Stocks prices displayed on an electronic board at the Asia Plus Securities Pcl headquarters are photographed with a zoom effect in Bangkok, Thailand, on Thursday, May 8, 2014. The baht fell to a one-month low and stocks slumped on concern global investors will shun Thailand after a court ruling to remove Yingluck Shinawatra as prime minister worsened the nation's political crisis.
Photographer: Dario Pignatelli/Bloomberg

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By Viren Vaghela and Benjamin Robertson

December 6, 2017 at 4:00 AM UTC

This article is for subscribers only.

New European rules may prevent the continent’s investors from buying or selling instruments linked to some of Asia’s best known indexes, according to an industry group.

The so-called EU benchmarks regulation, which comes into force next month, requires more than 55 non-European gauges, including the Hang Seng Index and Nikkei 225 Index, to register with European authorities. But even with a two-year grace period allowing registration by 2020, it’s unclear whether this will be achieved, according to a report published by the Asia Securities Industry & Financial Markets Association and law firm Herbert Smith Freehills LLP.