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'Hard Brexit' would only have a modest impact on city

James_OrtonJames_Orton Posts: 2,371
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in Politics #1
It's not just me talking about MIFID II as a stop gap measure but the international financial rating agency Moody's think so.

https://www.google.co.uk/amp/s/amp.theguardian.com/business/2016/sep/19/hard-brexit-would-have-only-modest-impact-on-city-says-moodys?client=ms-android-sonymobile

MIFID II is just one of the regulations, others are in place too.

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    James_OrtonJames_Orton Posts: 2,371
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    I noticed the ft has picked up this also now. A quote from Moody's.

    We consider that the equivalence provisions within MIFID 2, the complexity of (quickly) unwinding the status quo and the desire to minimise the initial impact on European domiciled banks will lead to the preservation of most cross-border rights to undertake business.
    Other critical factors such as capital and liquidity, which are largely determined by global standards, are unlikely to face material changes due to Brexit per se.
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    Shopaholic26Shopaholic26 Posts: 3,322
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    James_Orton wrote: »
    I noticed the ft has picked up this also now. A quote from Moody's.

    We consider that the equivalence provisions within MIFID 2, the complexity of (quickly) unwinding the status quo and the desire to minimise the initial impact on European domiciled banks will lead to the preservation of most cross-border rights to undertake business.
    Other critical factors such as capital and liquidity, which are largely determined by global standards, are unlikely to face material changes due to Brexit per se.

    There's also this....which I read about a while ago.


    Bitcoin's Blockchain Could Save London's Banks After Brexit

    This is where blockchain comes in. According to the Financial Times article, four of the world's biggest banks -- UBS (UBS) , Deutsche Bank (DB) , Santander (SAN) and BNY Mellon (BK) , together with broker ICAP IAPLY, teamed up to create a sort of "utility settlement coin" and pitch the idea to central banks.

    Such a settlement method would eventually mean that trades anywhere could be recorded and cleared electronically, safely and quickly. Therefore, there would be no actual need, at least technically, for clearing house to be based in a certain jurisdiction. The paper said the four banks hope to have a commercial solution ready by 2018.

    This would be just in time for London-based banks. If the U.K. triggers Article 50 of the EU Treaty, which is the official notification that it wants to leave the block, early next year as Prime Minister Theresa May suggested, it has two years to negotiate its withdrawal.

    http://realmoney.thestreet.com/articles/08/24/2016/bitcoins-blockchain-could-save-londons-banks-after-brexit
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