Brexit Forex issues worldwide in the capital markets

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Brexit Forex

FxPremiere Group analysts view on the BREXIT Forex issues now seeing immense changes as future commences with the EU Referendum. New Financial believes that Europe needs bigger and better capital markets in EU for the potential knock on effects on investors, issuers and other customers. The New Financial believes that Europe will need to help recover from this and need a good growth. One of the clear messages that emerges from this report is that the current efforts across the EU to encourage the development of capital markets and reduce the dependence of the European economy on the bank lending arena could be immensely distrupted. As UK voted to leave the EU this will have major issues.Buy Gold?

brexit forex

The Report does not explore the politics of the debate that is a question for the British people and the respective campaigns.

The impacts of BREXIT :-

  • UK and EU capital markets are highly interconnected with the UK dominant party. More than 3 /4 of all capital markets in conducted outside the EU27.
  • Many Banks and UK based firms will be relocating.
  • Significant dislocation and uncertainty in markets and across the industry, leading to lower activity and less cross-border investments.
  • UK will have to look at EU negotiations such as the Norwegian one.
  • Low number of benefits to the Capital Markets in the UK from Brexit.

The potential benefits of Leaving the EU from FxPremiere Group – Forex Signals team views from news feed globally:-  The majority of respondents to our survey made the case for the UK to remain in the EU and said they had identified no benefits to their business or for their clients if the UK were to leave. A handful of respondents quoted Brexit could have a positive effect on UK capital markets on the grounds of democracy, over-regulation, the UK’s global outlook, and its strong negotiating position.

Summary of the BREXIT case:

• Democracy: brexit forex – since the United Kingdom last held a referendum on membership of the EEC in 1975, the European Union has become a more political project that challenges the rights of individual member states to control their own affairs. The UK’s influence in the regulation of European capital markets has declined over time – the UK share of MEPs has fallen from 21% in 1986 to 11% now – and smaller countries with less experience of capital market have a disproportionate voice on European Union wide regulatory bodies on how UK capital markets are run.

• Over-regulation: since the official launch of the single market in 1992 the UK financial services industry has been subjected to a barrage of often unnecessary politicised and prescriptive regulation. Brexit would allow the UK to develop a more complex regulatory framework that was more in line with global rules and more appropriate to the UK’s traditional strength in finance, while retaining enough equivalence to retain a high level of access to the single market as a third country.

• Adaptability: brexit forex concerns over uncertainty and volatility post-Brexit and of the potential impact on the City of London are over-blown. Over hundreds of years the City has demonstrated its ability to adapt to change and to often adverse conditions. People in the capital markets want to trade with each other. On the other side of Brexit, there would be a brief pause and some uncertainty, before everyone got back to business.

• Global analysis: the UK has a global overview when it comes to capital markets. Capital Markets in the Financial market are largely geographically insensitive and the UK has developed a strong track record as a hub for revenue, trading and investment from all over the world. Brexit would enable the UK to expand its global business and cement its role as a global finance centre.

• A strong hand: The UK would have very strong hand to play in post-Brexit negotiations because of its inherent advantage of expertise, language, legal system and time-zone, its dominance of EU financial markets, and the need for many big issuers and investors in the rest of the EU to retain access to them. Minority report: it should be stressed that this was very much a minority view in our sample. The vast majority of respondents from different countries and different sectors of the capital markets were clear that Brexit could – at the very least – cause a significant amount of disruption and uncertainty to market participants and their customers across the EU, and in the longer term could increase costs and complexity and could undermine the UK’s leading role in EU capital markets.


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