In the wake of England’s suprise vote to leave the European Union, members of the capital markets are weighing in on the new global financial landscape. The following opinion does not reflect those of the editors ofTradersand its parent company, Sourcemedia.
While short term market volatility is inevitable, longer term implications for the UK financial services sector are less clear with Brexit now a reality. Ultimately, the post-Brexit renegotiation will be key and it all comes down to how liberated the UK financial services sector will be outside of the EU.
For the big multinationals, it will be business as usual as the majority have regional offices throughout Europe. Even midsized firms focused on advisory and research services, not traditionally overburdened with regulation from Brussels, will remain in a strong position.
However, for firms exposed to more heavily regulated areas such as trading infrastructure, a few questions will arise. Will the FCA still maintain its commitment to MiFID II? Will the City avoid dark pool caps to allow off-exchange trading to flourish?
Also, what will happen to the much criticised European bankers bonus cap provisions under the capital requirements directive (CRD)? In the past, the Treasury has not been shy in displaying its disdain for bonus caps. If the UK is no longer subject to CRD, you could find bankers previously worried about having their bonuses capped come flooding back to London.
—Rob Boardman
European CEO of equities broker ITG
Read the first Brexit Reactions from Don Steinbrugge.
Wall Street Responds to theBrexit Shocker
INSIGHTS: Opportunities Inthe Eye of the Brexit Storm
