Experts predict that the European financial market will face big changes after the UK's final exit from the European Union in 2021. The fact is that after Brexit, euro-denominated assets (stocks and derivatives) will be withdrawn from London exchanges, and the long-term consequences of such changes are not yet clear. The trade agreement between London and Brussels last week does not cover the financial sector. This means that UK access to EU financial markets will end on December 31st. And the consequences of this can be seen already on January 4, the first day of trading in the new year. Analysts also note that the EU wants to reduce its dependence on London for financial services and increase the volume of trading in euro assets in Frankfurt, Paris, Amsterdam and other financial centers of continental Europe. As a result, the European stock and bond markets will split up, which could result in higher tariffs for investors. From January 4, EU banks will carry out operations only on the territory of the block and will abandon British platforms (Cboe Europe, Aquis Exchange, Turquoise and Goldman Sachs). According to David Hewson, President of Cboe Europe, virtually all cross-border transactions in European stocks will move to other sites in one day, which will be the largest shift in stock trading in the last two decades.
PAUTAN SEGERA