The London Stock Exchange (LSE) has triggered its plans in case of a hard Brexit, however, it warned that terms that are not yet clear might weaken its efforts to safeguard the City.
The group said that the Brexit talks were still “unclear” and so it was preparing for a hard Brexit in order to protect the City and “maintain continuity of market function” in case a no deal is reached by March 2019.
As with other firms in the City, those plans include matters such as applying for licenses or establishing new entities on the continent. REportedly, LSE has already applied for different trading licenses in the Netherlands.
However, it cautioned that the “complexity and the lack of clarity of the application of a hard Brexit may decrease the effectiveness, or applicability of some of these contingency plans” and would likely present “some change management risk.”
The said announcement arrives just one day after David Schwimmer, the new boss of the exchange officially rose to his new job. Schwimmer is a twenty year veteran of Goldman Sachs. The American banker was perceived by the shareholders as a safe bet after the LSE experienced a tumultuous 2017, having its partnership with Deutsche Boerse hindered and becoming involved in a row with one of its top investors.
The firm reported a 30 percent increase in its pre-tax profits to £360 million for the first-half of this year, with revenues up by 12 percent to £953 million for the period.
Elsewhere in the City, Aviva, the FTSE 100 insurance giant, reported a 2 percent drop in its first-half operating profit because of higher weather-related claims in the United Kingdom and challenging conditions in the motor insurance market of Canada.