City of London Says UK Must Reject No-Deal Brexit
Yesterday the UK parliament voted against the withdrawal deal negotiated by Prime Minister Theresa May for the country’s departure from the European Union on 29 March 2019. Members of parliament will vote on a motion today on whether to allow a “no-deal” Brexit without any transition period.
Miles Celic, Chief Executive Officer of trade organisation TheCityUK, said:
Following this evening’s #brexit vote in @UKParliament, @TCUKmiles says: "The UK leaving the EU without a deal would be an own goal of historic proportions… MPs must now say ‘no to no-deal’…" https://t.co/ArMTByDkQA
— TheCityUK (@TheCityUK) March 12, 2019
“The UK leaving the EU without a deal would be an own goal of historic proportions for the UK and the EU. This is absolutely not in the interests of customers or the wider economy. MPs must now say ‘no to no-deal’ and the UK and the EU must urgently return to the negotiating table. We need a rapid agreement on the way forward to protect customers and jobs. This is a vital part of keeping the U.K. at the top of the global premier league of international financial centres – something that is in the interests of customers at home and across Europe.”
Charlotte Crosswell, chief executive of Innovate Finance, an independent membership association that represents the UK’s fintech community said:
Charlotte Crosswell, CEO, Innovate Finance provides response to the UK Parliament’s latest vote on the Withdrawal Agreement from the EU. Read the full statement here: https://t.co/gCYlD0XQj7 #Fintech pic.twitter.com/ZS6cOosFJ1
— Innovate Finance (@InnFin) March 12, 2019
Nigel Green, founder and chief executive of financial advisors deVere Group, said in an email: “There are three steps that now need to be taken to end the chaos and move forward. First, a no deal Brexit must be taken off the table which parliament is likely to do in this evening’s vote, as a messy and disorderly Brexit on 29 March would be political, diplomatic and economic negligence in the extreme.”
He continued that the UK must then seek to extend Article 50, the mechanism by which it leaves the EU, and then hold a second Brexit referendum.
Catherine McGuiness, policy chair at City of London Corporation, which promotes UK financial services, said:
The rejection of the Government’s deal tonight leaves British businesses facing continued economic uncertainty at a critical juncture. Politicans must overcome their differences and make avoiding a no-deal Brexit the absolute priority, starting tomorrow https://t.co/ChXzcbeAAK
— Catherine McGuinness (@City_McGuinness) March 12, 2019
Chris Cummings, chief executive of the Investment Association, which represents UK fund managers, said:
‘Chris Cummings, chief executive of the association, said:
“Given the continued uncertainty that today’s result brings, the industry has no option but to implement their long-established no-deal contingency plans.”’ https://t.co/3zL8ooCegb
— The Investment Association (@InvAssoc) March 12, 2019
J. Christopher Giancarlo, chairman of US regulator CFTC, said at a conference today:
.@giancarloCFTC to #FIABoca – @CFTC @bankofengland @TheFCA along w/ @hmtreasury are taking measures to avoid regulatory uncertainty about continuation of derivatives market activity between the UK & US. Should give market participants confidence re: managing risk across Atlantic
— CFTC (@CFTC) March 13, 2019
All LCH services reported record volumes of over-the-counter clearing.
EU law will continue to apply during the implementation period.
Managers should continue to modernize legal and compliance.
Global asset allocators are likely to shift money back to the UK.
Industry says without an extension, EU clearing members could face trouble in UK CCPs.