the official language of this conference is English

Let·s get the party rocking

Silence

Today, we focus on

We, the United Kingdom

held a national referendum on 6/23

and the result showed that 52% voted to leave

and 48% wanted to stay

The next day, Cameron claimed to resign

The British pound depreciated and the index of FTSE 100 plunged

After that, Theresa May became the new prime minister

We, Germany

strongly refuse any informal Brexit talks until the UK triggers Article 50

Italy Second

France Second

Oh my friends

Brexit means Brexit

We will trigger Article 50 to formally initiate the leaving process

by the end of March next year

Her firm tone implied a tendency for Britain to totally breaks up with EU

which was called Hard Brexit

Unlike the concept of Soft Brexit

speculated by the market formerly

British is probably not paying the member fee for the access to the single market

Established in 1694

Bank of England is the first central bank in the world

and it has been the cutting edge of financial instruments and law due to their foresight and opening policy

London boasts 250 foreign banks and 200 foreign law firms

An abundance of clever people

adept in English law as much as in finance

gathers here, and the wealth of employers, in turn, attracts more workers

These factors offer London·s financial industry economies of scale

which forms its status as the main clearing center in euro-denominated securities

Such as, swap, stock, future, banknote, option

Around 70% of trading in euro interest-rate swaps

takes place in London produce clearing house

even though it is outside the euro zone

But what does clearing house mean

It is an intermediary between buyers and sellers of financial instruments

which secures them to attain what they want with the credible trading data

Also, if default occurs clearing house would take on the significant risk

making financial market stable and efficient

London·s economies of scale makes it the clearing center

and as it is much easier to find buyers and sellers in the tremendous market

being a clearing center attracts more financial businesses

London is viewed as a global entry point into the EU for financial services

but that relies on UK-based financial entities

being able to ;passport: their services within the EU single market

Because of Brexit

UK may lose its financial passporting rights

and countries such as China may withdraw their investment in the UK

Besides, it could also make the city less attractive for international banks and financial institutions

And further damage its status as European financial center

There·s also a possible solution to enter the single market

MIFID 2 creates a new single rulebook for non-EU members

to follow the same financial laws and regulations

and by this, they may enjoy some access to the single market

The European Central Bank has been monitoring the clearing market through BOE

to avoid the panic caused by violent price fluctuation

However, the ECB has long wanted its currency clearing to take place on its turf for effectiveness

As long as Britain losses EU membership and recourse to the European Court

London·s clearing center position may be deprived

following by the departing of international banks and financial institutions

Now, there are several cities, such as Paris, Frankfurt and Amsterdam

coveting after the position of clearing center because of its tremendous profit

Due to the time concern, who can give us a summary

London is not about to crumble in the short time

as other centers lack its scales and sheer concentration of expertise

Also, we suppose that the location of clearing center should be the result of free market system

rather than who speaks the loudest gets the prize

However, it·s no doubt that some business may go elsewhere

and Europe·s financial industry will become more fragmented and inefficient

due to the uncertainty to the future direction

The longer the political and regulatory vacuum lasts

the more harm it will do

Thanks for your efforts and participation