LONDON (Reuters) – Europe will see its biggest transfer of share trading in more than two decades when stock exchanges open for business in 2021, with Brexit shifting its centre of gravity away from London.
While market players hope that years of preparations since Britain voted to leave the European Union means the transition of most euro-denominated assets like shares and derivatives out of the country will be relatively smooth, the long-term impact is unclear.
“This is a big bang event and that is one of the things that the market hasn’t truly understood yet,” Alasdair Haynes, chief executive of London-based share trading platform Aquis Exchange, told Reuters.
“This is literally everything moves on a specific day and we have got to pray to God that we don’t have some extraordinary event happen in the market that creates high volumes,” Haynes said
While the landmark trade deal agreed last week set rules for industries such as fishing and agriculture, it did not cover Britain’s much larger finance sector, meaning automatic access to the EU’s financial markets comes to an end on Dec 31. Reuters News.