Brexit Will Raise Costs and Fragment Clearing, Euronext CEO Says
- Consequences of Brexit will be deeper than expected, CEO says
- EU leaders won’t accept decision-making outside bloc, he says
Company stock price information is displayed on a screen as it hangs above the Paris stock exchange, operated by Euronext NV, in La Defense business district in Paris, France, on Monday, April 24, 2017. France’s bonds jumped, with the 10-year yield dropping to its lowest level in three months, after centrist Emmanuel Macron and nationalist Marine Le Pen won the first round of the nation’s presidential election.
Photographer: Christophe Morin /BloombergEuronext NV Chief Executive Officer Stephane Boujnah said people should expect costs and fragmentation of the financial industry stemming from the U.K.’s departure from the European Union.
London’s dominant role in clearing euro derivatives is one of the most vulnerable dominoes in the U.K.’s finance industry and will be fought over in the looming Brexit negotiations. Euronext, which operates markets in Amsterdam, Brussels, Lisbon and Paris, has said Brexit will likely diminish London’s role as a global financial center and may create opportunities for the company to win business.