Industry Leaders Weigh In About Brexit Fallout on FX Industry

The global marketplace is still digesting the news of the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term vote and the triumph of the 'Leave' stance that places the UK in unchartered waters. In light of the turmoil wrought on financial markets, several industry leaders have weighed in on the impact of Brexit on the FX industry itself.

Tom Higgins, CEO, Gold-i

"I am shocked about the results but I am a firm believer that from every adverse situation, there’s always something positive that can come out of it. As a technology business focusing on the financial markets, for us the opportunity will be to focus on our risk management tools. Clients with the most technically advanced risk management solutions will have the greatest control of their risk and therefore a greater opportunity to make more money.

I am concerned about the skills gap moving forward

We have recruited very talented EU citizens into the business – and although I was relieved to hear today that the Government plans to allow current EU employees to remain in the country, I am concerned about the skills gap moving forward. We will undoubtedly need a new system in place – perhaps like the Australian points system - to be able to recruit skilled workers into roles which we are not able to fill with UK citizens. It’s important for the UK economy to be able to get the best talent into our businesses,” he noted.

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Nick Murray-Leslie, CEO, Chatsworth

"London’s financial sector is in shock following a marathon 24 hours of market activity. Although many had priced in the risk of a potential Brexit, the extraordinary swings in GBP reflected currency traders' worst fears. In a poll conducted by Chatsworth earlier this year, 80% of currency market professionals expected the UK to vote to remain in the EU. However, when the first indications emerged that the UK would be leaving, we saw a negative contagion effect spread swiftly through the market as investors struggled to come to terms with the outcome.

There is no doubt that London’s leading position as a USD 2.2 trillion hub for FX trading is now under threat. Two-thirds (65%) of respondents told Chatsworth that they feared that a Brexit would negatively affect London’s position as the world's largest FX trading centre. Many will now stand by with bated breath as politicians begin the onerous process from untangling itself from a 40 year trading relationship, and wondering what the future holds.

London and the City in particular as a global financial capital, where the vast majority of currency trading is transacted, will be bracing itself as the rest of the EU takes stock of the result. Traders, investors and money managers can now expect a prolonged period of uncertainty - the number one bugbear for financial markets - as the UK takes a step into the unknown.”

Jeff Wilkins, Managing Director, Think Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term

"Coming off the heels of a historic evening, I've now had a few (not many) moments to reflect on how the previous day has unfolded. I'm proud of my team and can confidently say they did a phenomenal job managing the turbulence. I was also impressed with our liquidity partners for providing quality liquidity through the massive moves.

This vote will rock the markets for the foreseeable future

This vote will rock the markets for the foreseeable future and will trigger a cascading effect across the EU for years to come. There is talk of regulators taking action and making changes, yet it is us as an industry whom took it upon ourselves to implement self imposed margin restrictions. The last day speaks volumes for the efficiency of OTC markets. This referendum certainly had a large amount of hype over the last month, and the results lived up to the hype. This will be the catalyst for many changes over the coming years," he added.