One of the changes that had the most effect in the industry was changes of the trading floor. The EU was founded, and in 1999 the introduction of the Euro gave them access to the market of the newly created currency. Therefore, we can see how big the industry is and how much of the economy it represents.
The specific details regarding the agreement and the negotiations have not been made public, it is a known fact that one of the biggest challenges in the negotiations is regarding Ireland, Northern Ireland. The current work is not centered on the UK economy, but rather on the challenges, obstacles and opportunities that the investment banking industry will face in various areas of the industry, such as access to the EU single market, passporting issues, competitors, and. Limited access to the UK's largest banking data in terms of FDI, investment banking division income, broken down by services offered with year-on-year growth or decline in each EU country.
To put this last figure into perspective, 50-60% of UK “investment firms” under MiFID use passports to the EU-27” [8]. One of the main criticisms that can be attributed to [21] is that it assumes that Britain has to choose between when in reality Britain has many options even if it is a hard Brexit. The article [20] delves into how London is unlikely to be challenged as a European financial center, while at the same time observing how other cities in the European Union may in fact have something to gain from leaving of Great Britain from the union. .
Throughout the research a common theme that has surfaced is that of competitors emerging from Brexit. Frankfurt itself has proven to be a key growing player in the financial industry and has as one of the frontrunners in this race for several reasons. The infrastructure and space are already there, and city politicians have publicly praised and lobbied for city expansion.
At worst, this would result in a debacle or contraction of London's financial sector. With steady growth predicted to exceed all European counterparts at the highest or lower levels of confident forecasts. A trade deal with the US may, in fact, prove feasible given the current state of US-China relations.
The uncertainties presented by the British government and the European Commission in relation to almost all areas of the agreement lead to many variables in the equation that can go either way. Most of the papers discussed in the current piece recognize and agree that one of the most important issues facing the investment banking industry in Brexit is passporting and access to the single market. The paper [20] by Schmid, Lavery and McDaniel proposes a more realistic but visionary idea regarding the future of the industry.
At the end of the day, Brexit may result in one of the biggest opportunities for the investment banking industry in London to expand and become a leading global financial centre.
Acknowledgment
Through our findings, we were able to conclude that regardless of the outcome, the UK faces less of a threat when it comes to losing its financial centre, as the worst-case scenario would still see it outperform its European counterparts. And it is in the interests of the EU and the UK that the UK financial market continues to function effectively, as a change in business would not only mean devolution but would cause liquidity problems in the banking sector. And so we can conclude that the best scenario for everyone would be a soft Brexit with a partial UK passport.
This will allow the UK to continue and expand their operations by negotiating trade with other countries. European cities will be able to develop their own cooperation agreements with the City and thus allow themselves to expand and increase in size their own financial hubs. All this would also mean no crisis of confidence in the EU, no liquidity and no currency issues.
Marrë nga https://www.theguardian.com/politics/2016/jun/24/how-did-uk-end-up-voting-leave-european-union. Marrë nga https://www.reuters.com/article/us-britain-eu-defection/uk- pm-johnson-loses-majority-in-parliament-after-lawmaker-defects-to-liberal-democrats-. Ndikimi-of-Brexit-on-investment-bank-operations-and-technology/$FILE/EY-Impact-of- Brexit-on-investment-bank-operations-and-technology.pdf.
Retrieved from https://www.bloomberg.com/news/articles pound-hits-lowest-since-march-2017-as-no-deal-risk-flares-again. Frankfurt and Paris as European Financial Centers after Brexit” Retrieved from Journal of European Public Policy. Boris Johnson faces a bigger battle in 2020” Retrieved from https://www.bnnbloomberg.ca/getting-brexit-done-boris-johnson-faces-a-bigger-battle-in.
APPENDIX
Exhibit 8 Quarterly sum of monetary financial institutions in sterling and all foreign currency fees and commissions receivable relating to investment banking, advisory, brokerage and insurance from residents and non-residents (in millions of pounds) not seasonally adjusted. Retrieved from Bank of England.
