Inside Theresa May's Double Brexit Threat

The transcript discusses the implications of delayed trade negotiations on financial services, particularly in relation to Brexit. It highlights the uncertainty faced by financial firms regarding passporting and regulatory issues, and the potential fragmentation of financial services across Europe. The discussion also covers the complexities of clearing and market fragmentation, emphasizing the financial impact and increased capital costs associated with splitting asset classes.

Why is it critical for financial services firms to have certainty by the end of the year?

• To comply with new tax regulations

• To make strategic decisions about operations and locations

• To finalize their annual reports

• To launch new financial products

What was the initial expectation for financial firms post-Brexit?

• They would all move to Dublin

• They would remain in London

• They would move to Frankfurt

• They would distribute evenly across Europe

Which cities are financial firms considering for relocation post-Brexit?

• Frankfurt, Dublin, Luxembourg, and Paris

• London, Berlin, Madrid, and Rome

• Lisbon, Prague, Warsaw, and Budapest

• Amsterdam, Brussels, Vienna, and Zurich

What is a significant concern if clearing is fragmented across the eurozone?

• It will decrease the number of financial jobs

• It will increase capital costs significantly

• It will simplify regulatory compliance

• It will reduce the need for new infrastructure

What is the estimated increase in capital costs due to true fragmentation?

• 10 to 20 billion

• 20 to 30 billion

• 30 to 50 billion

• 50 to 70 billion