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The UK has reached an agreement with the EU on post-Brexit financial services, according to unconfirmed reports.
The Times newspaper said London had agreed in talks with Brussels to give British financial services companies continued access to the bloc. The pound rose nearly 1% against the dollar.
Government sources said that a tentative agreement had been reached on all aspects of a future services partnership.
An initial agreement on data exchange was also agreed, says the document.
He added that the transaction should be finalized within three weeks.
The departure of Britain from the European Union is expected to take place in March next year, but many UK-based companies have expressed concern about the lack of progress in the negotiations on the European Union. Brexit.
Although Prime Minister Theresa May has repeatedly stated that final business conditions between British and European companies will be finalized by March, companies are already preparing for the worst.
May's senior advisor for Europe, Oliver Robbins, was continuing negotiations in Brussels, the Times said.
Analysis
Dominic O. Connell, Today Program Business Presenter
The equivalence – the apparent basis of the agreement announced between Theresa May and Brussels on financial services – sounds like a cautious continuation of what the city has now. This is not it.
Equivalence, in this context, is a legal term describing the regime used by the EU to deal with countries outside its borders. The EU grants equivalence to other states if it can be convinced that its rules are the same as those set by Brussels.
Equivalence and the accompanying trading rights may be withdrawn at any time. That's why, when Hogan Lovells, one of the city's leading law firms, was asked to consider equivalency on the part of City UK, the organization Square Mile shopping mall. His conclusion was that it did not "provide a sustainable long-term solution".
What we do not know though, is if Ms. May has managed to negotiate some kind of equivalence-plus, with the kind of safeguards that would alleviate the city's fears. In any case, information on any type of agreement would be enough to rally the pound sterling, and even those who are not satisfied with the idea of equivalence would admit that it is probably better than not to conclude no agreement.
According to the newspaper report, this agreement means that after Brexit, UK financial services companies will be able to operate within the EU as they do now.
The Times said the EU would agree that the UK has a regulation "equivalent" to that of Brussels and that it will therefore benefit from market access.
However, there was no official confirmation of the report.
Thomas Moore, investment director for UK equities at Aberdeen Standard Investments, told the BBC's Today program that, though it's true, "I think that overall, it's positive ".
He added that granting equivalence, desired by the City, "confers much greater certainty, not just to financial companies".
