The Brexit-derived woes of the United Kingdom are almost too many to comment upon, with stories of political, economic and regulatory problems making the headlines almost every day. However, here are two news items which are indicative of the reaction by the international business market to the UK’s decision to leave the European Union in its entirety and the knock-on benefits this is having for its neighbours.
First up, from Reuters:
The global derivatives industry launched an Irish law version of its dispute resolution mechanism for trillions of euros of swaps contracts on Tuesday to “future-proof” users against the uncertainties presented by Brexit.
The International Association of Swaps and Derivatives Association (ISDA) writes the “master agreement” used as a template for hundreds of thousands of swap contracts bought by companies to hedge against adverse moves in borrowing costs and currencies.
The current agreement allows users to refer disputes to courts in Japan, New York or England, but ISDA began fundamental changes to cope with a “hard” Brexit earlier this year and has added Irish and French courts to its list.
Nearly all market participants in Europe opt for English courts, but ISDA said earlier this year that it was unclear if this could continue for European Union counterparties after Britain leaves the bloc in just over a year’s time.
Ireland, which operates a common law system like England, is among a handful of countries competing for firms moving operations as a result of Brexit and has already drawn banking, insurance and funds industry jobs way from London.
Bloomberg reports from the Netherlands that at the arrivals hall of Amsterdam’s Schiphol airport,
…drivers bearing placards jostle with relatives to greet the 68 million passengers who pass through every year. For a select group of visitors, the Dutch government has lent a helping hand arranging the chauffeur service.
The visitors are senior managers at U.K.-based trading firms and venues, who need to decide whether the Dutch city will be their EU home when Britain leaves the bloc next March.
The drivers ferry visitors between meetings with everyone they need to know to set up in the city; property brokers, supervisors and executives at Amsterdam’s cluster of big speed traders all feature on the agenda.
The meetings are paying off: Cboe Global Markets Inc., the owner of the largest equity-trading venue in Europe, said Tuesday that it has chosen the Dutch city. Aquis Exchange Plc, which also runs a stock-trading venue, will choose between Amsterdam and Paris in the coming weeks, a person with knowledge of the matter said.
TP ICAP Plc, the world’s largest interdealer broker, is weighing Amsterdam or Dublin…
Meanwhile, in Brexlandia, the Express newspaper declares that Britain is on the cusp of its long dreamed of Empire 2.0:
Project Fear FOILED: Brexit Britain in ‘superb position’ to seize growth in Asia
BREXIT Britain will be in a “superb position” to take advantage of taking advantage of the growth in global wealth once it is free of the EU’s shackles, MPs have heard.