Brexit’s Big Share Trading Transfer

Once stock exchanges are back to business in 2021, and thanks to Brexit - London ceases to be the big market player city it once was, Europe is likely to see the biggest transfer of shares in over two decades. 

The decrease of reliance on London and the shift of financial services for euro-based trading to Frankfurt, Paris, Amsterdam and other financial centres in the bloc will split Europe’s stock, bond and derivative markets into two separate pools, giving birth to concerns that investors will get less competitive prices.

One can only hope that years of preparation for Brexit will result in a smoother transition of most euro-denominated assets out of the country, but the long-term effect of the change still remains unclear.

"This is a big bang event and that is one of the things that the market hasn't truly understood yet. 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”, says Alasdair Haynes - chief executive of London-based share trading platform Aquis Exchange.

EU banks will have to trade euro-denominated shares inside the bloc from the 4th of January, forcing them to switch from platforms run by the likes of Cboe Europe, Aquis Exchange, London Stock Exchange's Turquoise and Goldman Sachs in London, to their newly-opened hubs in Amsterdam or Paris, summing up for an almost overnight shift.

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