It has been more than a year since the United Kingdom caused a stir in the world when the country decided to divorce with the European Union. The decision was dubbed as the infamous Brexit, a shorter term for ‘Britain’s exit.
Four months ago, or last March 2017, the UK government has formally started operating the Brexit wheels, as it triggered the Article 50, or the formal process of leaving the continental bloc. Since then, there were two names emerged as frontrunners of the discussion- the European Union and the stock market itself, the London Stock Exchange.
Currently, UK is busy working on the sequence of the negotiations, which will cover the formal exit arrangements and the future relationship between the country and the continental bloc that will certainly affect UK citizens in the EU and EU citizens in the UK.
Much has to be settled and come 2019, if Great Britain does not change its mind, things will be put in their right place. And since much is at stake, nobody is putting all cards in the table.
Recently, the London Stock Exchange proposed a clearing market plan, which could benefit both the organization and UK itself. In this process, trades will go through a specific entity and will function as a clearing house to avoid series of losses for other countries.
This attempt to establish a trading powerhouse in the continent has been blocked by the European commission itself. The rejection has created a tug-of-war between the stock market and the EU.
The LSE has responded on the move by the commission and warned it that the continent will suffer should the proposal does not push through. On the other hand, the bloc has expressed its concerns because large consequences await EU if they allow a London-based clearing house to operate.