A month after Britain voted to leave the EU, Boris Johnson was asked if he thought the finance ministry would retain the right to free trade in Europe. “I do, I do,” he told reporters. But it has never been so easy.
Half a decade later, billions of assets and thousands of jobs have moved to the continent, with Britain leaving the financial sector after negotiating a small trade deal with the EU. On the other hand cities like Amsterdam, Dublin, Frankfurt and Paris were given the opportunity to bring jobs and trade activities from Great Britain to the mainland.
So far there is no clear winner. Most companies and employees are still in the process of figuring out which city is best suited for them in the new reality. EU Commissioner for Financial Services Miret McKinnon told reporters in March that Frankfurt, Amsterdam, Paris and Dublin were likely to take over parts of the financial system. “Markets decide, and are the best at doing it.”
Great Britain and the European Union want to adopt at least some of the basic rules of the game for the financial world by the end of March.
“I do not think you can create a financial center,” said Douglas Flint, president of Standard Life Aberdeen, the UK’s financial manager. “The challenge for the EU is to determine where such a center should be and how it wants to hand over its operations to competing EU countries.”
That has happened so far
Stock Trading: Trading in European stocks previously held in the UK was abruptly transferred to the EU on 4 January. London, Europe’s leading trading hub, lost its crown to Amsterdam. As a consolation, Swiss stocks have been trading there again since February, which was not possible when Great Britain was still a member of the European Union. Great Britain now wants to bring more companies to London through simple rules for IPOs.
Trade Transactions: London has long been a global hub for trade interest rate transactions. However, the city’s dominance was affected after the EU banned its companies from trading in some key deals on London – based sites. Some of that business has shifted to Wall Street.
Destruction of Descendants: The London Stock Exchange’s LCH Clearinghouse has agreed with the European Union to carry out European trade until June 2022. It makes clear that the EU then expects a change in the balance of power. Bank of England wants to prevent transfers.
Investment banking: IPOs are another area where Europe’s finance district is one of its rivals in Europe. UK IPOs are on record quarter. Initial Producer Dr. Martens has already raised $ 7.2 billion this year for the Russian discount fix price.
This is a good year for M&A bankers. Acquisitions of foreign companies in the UK have nearly tripled to $ 66 billion this year, according to Bloomberg data. Acquisitions of listed UK companies have more than tripled. However, this may reflect weakness. UK companies have become more attractive acquisition targets as their ratings lag behind other major markets over the past year.
Jobs and Assets: According to an EY study, financial institutions have announced plans to transfer 7,600 jobs from the UK to the EU. Assets of about 3 1.3 trillion (டிர 1.5 trillion) are also moving. Dublin has attracted a large number of companies migrating to the EU. Frankfurt and Paris were popular with large companies such as global banks, investment banks and brokers.
House prices: Tax changes and the relatively weak economy have been the biggest impacts on UK house prices. However, Brexit and banker immigration may increase the trend. Since the UK voted to leave the EU, house prices in London have risen by 6 per cent, to 20 per cent in Dublin and 40 per cent in Amsterdam.