Will the EU cut off London?
Amsterdam ousted London as the largest financial trading centre in Europe last month as Brexit-related changes to finance rules came into force.
According to the BBC report, following new Brexit rules, EU-based banks wanting to buy European shares currently cannot trade via London, meaning a loss of fees for City firms.
Bank of England chief Andrew Bailey has warned the EU not to cut off London. Mr Bailey said the City wanted to reach an agreement on financial rules but would not accept being “dictated” to by Brussels. He said EU demands had so far been unreasonable.
“I’m afraid a world in which the EU dictates and determines which rules and standards we have in the UK isn’t going to work,” the governor said.
Several details need sorting out before a deal is reached, around 7000 finance-related jobs have been relocated to Europe, not as bad as the 50,000 predicted before Brexit.
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