Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Brexit
World exchanges

How the European stock market will change after Brexit

17.09.2021
2 min read

What changes await the European stock market after the UK withdrawal

Brexit has forced a revision of all processes in Europe, and the changes have affected various segments. And if some of them were quite successful, even despite the forecasts of experts, the rest require a long restructuring. Analysts warn that fundamental changes await the European stock market. The key moment will be the withdrawal of shares, which are traded in euros, from British stock exchanges. At this stage it is quite difficult to predict the consequences of outflow of assets, so it is necessary to minimize the consequences in advance.
Experts warn that the market can move absolutely unexpectedly and it will be very difficult to cope with it. Many hoped that it would be possible to regulate the processes with the help of a trade agreement between Britain and the European Union. However, the agreement does not include the entire financial market, which shows the limitations of European platforms for London.
The EU plans to change policies regarding the kingdom, minimize the impact of the use of financial services. Brussels intends to increase the volume of securities denominated in euros. For this purpose will be used stock exchanges in Paris, Frankfurt, Amsterdam and other EU business centers.
Changes in the market contribute to the separation of European segments of stocks and other financial instruments. Experts fear that this will make it more difficult for investors, as rates for them will increase. Since the beginning of the year, European banks have been obliged to conduct trading operations with assets denominated in the EU currency. This rule covers the whole territory of the European Union, and it means refusal of services of many British platforms, including Turquoise, Goldman Sachs, Aquis Exchange and others. Now all processes will be carried out through companies in Amsterdam and Paris.

UK

It should be noted that most of the shares are placed on local exchanges, but through the platform of London carries out cross-border transactions with securities of European companies. Every day here are trades, the volume of which is about 8.6 billion euros, which equates to 25% of all transactions concluded on the territory of the European Union. According to one of the conditions of Brexit, all deals of this type should literally one day go to the trading floors of the EU. Such processes will cause a great strain on the system and the normal functioning of markets.
Another point is the derivatives segment, which amounts to several trillion euros. According to the report of the Central Bank of England, there may be difficulties with interest rate swaps, which amount to over 200 billion dollars. The fact is that banks need to carry out these processes only in local jurisdictions or on exchanges in New York, which have special permission.

 

Tags: World exchanges
0
Previous Post Analyst of Alfa-Capital: the share of dollar and euro is decreasing in favor of reserve currencies Next Post American electric car manufacturer Rivian has attracted $25 million

You Might Also Like

shares withdrawal
World exchanges
More and more company owners prefer to withdraw their shares from stock exchanges
30.05.2021
Bitcoin transactions
World exchanges
Forbes: bitcoin transactions on exchanges have a high risk of fictitiousness
16.10.2022
minimize risks
World exchanges
Bank of Russia recommends the Moscow Exchange to minimize the risks of contracts with negative prices
10.04.2021
SILEGX
World exchanges
Crypto exchange SILEGX Exchange announces new expansion plans
26.01.2025
IPO decline
World exchanges
Why IPOs are declining on the global stock exchanges
20.09.2024
Stock exchange indices
World exchanges
Why stock exchange indices are taking a hit before the US and Chinese negotiations
01.12.2020

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press
16.05.2020

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics