EU and U.K. Near First, Small Step for Post-Brexit Finance

  • Draft outlines plan to cooperate as two sides set own rules
  • Memo marks progress but U.K. still awaits equivalence from EU

The lack of an agreement so far has put London’s decades-long dominance of European finance under threat.

Photographer: Hollie Adams/Bloomberg
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Britain and the European Union are nearing agreement on how to cooperate on financial market rules -- a first, limited step toward working together after Brexit.

The two sides are proposing a joint forum for discussing regulations and sharing information, though this accord won’t require them to open markets through so-called equivalence decisions, according to a draft memorandum of understanding seen by Bloomberg News.