Best Execution
  • Home
  • Publication

    Best Execution

    • Current issue
    • Back issues
    • Profiles
    • Viewpoint
    • Market Opinion
    • Supplements
  • Topics

    Topics

     

    • Equities Trading
    • Fixed Income Trading
    • Derivatives Trading
    • FX – Foreign Exchange
    • Post-trade
    • ESG
  • Partners
  • Listings
  • Awards

    AWARDS

    • European Markets Choice Awards 2021
    • European Women in Finance – The Programme
    • European Women in Finance – The Winners
  • Events
  • About us

    About us

    • Marketing
    • Media info
    • Contact
  • Newsletter
  • Login
  • Home
  • Publication
    • Current issue
    • Back issues
    • Profiles
    • Viewpoint
    • Market Opinion
    • Supplements
  • Topics
    • Equities Trading
    • Fixed Income Trading
    • Derivatives Trading
    • FX – Foreign Exchange
    • Post-trade
    • ESG
  • Partners
  • Listings
  • Awards
    • European Markets Choice Awards 2021
    • European Women in Finance – The Programme
    • European Women in Finance – The Winners
  • Events
  • About us
    • Marketing
    • Media info
    • Contact
  • Newsletter
  • Login
HomeBlogsBlog : Stemming the Brexit tide : Lynn Strongin Do ...
Previous Next

Blog : Stemming the Brexit tide : Lynn Strongin Dodds

Posted by: Lynn Strongin Dodds, June 21, 2017
Tweet
Share
Share
Pin
0 Shares

STEMMING THE BREXIT TIDE.

It is hard to believe that it is only a year ago that the UK voted to leave the European Union. It seems like years and the uncertainty has only escalated in light of the Tory government failing to win a majority. While few are willing to call the outcome of what will certainly be long laborious Brexit talks many banks are not waiting and are already hatching their escape routes.

They of course cannot afford to wait, and a hard Brexit will certainly impact financial services which contributed about £71bn to the UK economy last year, according to PwC. Stemming the tide will be crucial especially if predictions from research group Bruegel materialise. The Brussels based firm estimates that the City could lose around 30,000 jobs as global banks may be forced to shift €1.8 trillion (£1.6 trillion) of assets to the continent after the UK shuts the EU door.

While this number may seem eye-watering, the announcements of impending departures have come thick and fast. Over the past year, HSBC indicated it could move its London based trading operations, which generate about 20% of revenue for the lender’s investment bank, to Paris while Goldman Sachs intimated that is was already implementing plans to relocate hundreds of staff out of the City before any Brexit deal is struck. Meanwhile UBS is looking to move 1,000 of the bank’s 5,000 jobs in London while JP Morgan is exploring different European and overseas locales.

Many in the Square Mile and Canary Wharf may take comfort from the united front put forth by Chancellor of the Exchequer Phillip Hammond and Bank of England Governor Mark Carney to defend the City’s fortunes. In his Mansion House speech, Hammond, emboldened by a weakened Prime Minister, broke ranks and said changes to customs arrangements should be phased in with transitional measures to protect key industries.

As for the City, he warned, “Fragmentation of financial services would result in poorer quality and higher-priced products for everyone concerned. Avoiding fragmentation of financial services is a huge prize for the economies of Europe, and I believe we can do it.”

This will grate with his hard-line colleagues including Brexit Minister David Davis who kick-started talks with his EU counterpart, Michel Barnier, earlier in the week. Although Davis adopted a stringent tone that confirmed Britain would be leaving the customs union and the single market, he did concede to the EU’s preferred order for the talks, which will mean trade negotiations do not begin immediately.

In the meantime, the political wrangling will continue on the UK domestic front and it is anyone’s guess whether the incumbent Prime Minister and her cabinet will be there for round two, set to begin the week of 17 July.

 

Blog : Stemming the Brexit tide : Lynn Strongin DoddsLynn Strongin Dodds

Managing Editor, Best Execution

©BestExecution 2017

Back to Top

Tags: David Davis, European Union, Mark Carney, Michel Barnier, Phillip Hammond, PwC

Share!
Tweet

Lynn Strongin Dodds

About the author
mm

Related Posts

SFDR goes live ushering in stricter disclosure requirements

SFDR goes live ushering in stricter disclosure requirements

The European Union’s new Sustainable Finance Disclosure Regulation (SFDR) has gone live today a ...
Technology : The Cloud : Heather McKenzie

Technology : The Cloud : Heather McKenzie

Cloud comes of age. Heather McKenzie looks at how Covid-19 is reshaping investment into cloud t ...
Italian Banking Association launches digital euro feasibility study

Italian Banking Association launches digital euro feasibility study

The Italian Banking Association, which comprises over 700 Italian banking institutions, is to l ...
French and Dutch regulators call for robust European framework for ESG data and ratings

French and Dutch regulators call for robust European framework for ESG data and ratings

The Autorité des marchés financiers (AMF) and its Dutch counterpart, the Autoriteit Financiële ...

Leave a Reply Cancel reply

You must be logged in to post a comment.

Subscribe for Email Updates

Best Execution
Recent
  • Charlotte Crosswell to step down as CEO of Innovate Finance

    Charlotte Crosswell to step down as CEO of Innovat ...

    April 9, 2021
    Tradeweb reports record monthly and first quarter results

    Tradeweb reports record monthly and first quarter ...

    April 8, 2021
    Industry viewpoint : David Parker : MTS Markets

    Industry viewpoint : David Parker : MTS Markets

    April 8, 2021
    EWiF : Jeanne Martin : Engaging with investors

    EWiF : Jeanne Martin : Engaging with investors

    April 8, 2021
    Cloud moves OMS/PMS convergence one step closer

    Cloud moves OMS/PMS convergence one step closer

    April 7, 2021

Menu

  • Home
  • Publication
  • Topics
  • Events
  • Partners
  • Listings
  • Privacy notice
  • About us

Best Execution

In these uncertain times and as the tide of regulation rises ever higher and wider, Best Execution offers an in-depth analysis into the major trends that are shaping the financial services industry as well as providing a more detailed insight into the technology driving new products and services being developed to meet these challenges.

Where the buyside and sellside meet.

Wikipedia: Best Execution

Social

linkedin
Newsletter Sign Up
Copyright © 2021 Markets Media Europe Ltd.
  • Home
  • Publication
  • Events
  • Privacy notice
  • Login