LSE CEO Sees Systemic Risk if London Loses Clearing

The video discusses the implications of Brexit on business costs, particularly focusing on the potential fragmentation of clearing services. It highlights the benefits of global financial services since 2008 and the political versus economic cases surrounding euro clearing relocation. The challenges in the EU's regulatory framework for clearing are examined, along with potential opportunities in Saudi Arabia and the growth of IPOs.

What is one of the main concerns discussed regarding Brexit's impact on businesses?

• Decreased demand for UK exports

• Rising costs due to fragmentation of clearing

• Loss of skilled labor

• Increased competition from EU companies

What percentage of the world's over-the-counter derivatives is cleared by the London Clearing House?

• 75%

• 100%

• 50%

• 95%

What is the political case made by some regarding euro clearing?

• To reduce systemic risk

• To extract euro clearing from London

• To enhance regulatory control

• To increase competition within the EU

What is a potential consequence of separating euro clearing from London?

• Enhanced regulatory efficiency

• Increased liquidity

• Reduced systemic risk

• Higher financial costs

How much could the additional cost of separating euro clearing amount to annually?

• 20 billion Euros

• 10 billion Euros

• 30 billion Euros

• 5 billion Euros

What is one of the future opportunities discussed in the panel?

• Opportunities in Saudi Arabia

• Expanding into the African market

• Investing in renewable energy

• Developing new financial technologies

What role does the London Stock Exchange play in the global market according to the panel?

• Reducing market competition

• Focusing solely on large corporations

• Supporting diverse capital raising

• Limiting access to capital