UK

The United Kingdom's vote to leave the European Union sent traders, lawyers and trade associations into overdrive this week as they sought clarity on whether contractual changes for derivatives will be required, what form they would take and how they could be modelled.

Citigroup bulked up parts of its Irish operations last year, in what may have been long term preparation for a potential UK vote to leave the European Union. But other US firms, including Goldman Sachs and Morgan Stanley, continue to rely heavily on their UK subsidiaries to access international markets.

US, German and French bankers speaking to GlobalCapital from the control room of the European high yield market want London to keep their capital. But they admit it is a hopeless wish, if Brussels imposes a full Brexit.

While a handful of loans were put on hold following the UK’s vote to leave the EU, a few deals already in the market are braving the choppy waters, with certain credits finding resilient support.

Even if the terms of the UK’s exit from the European Union are tied up soon, market volatility will remain high — with a second referendum on Scottish independence almost a certainty. And this time, a vote to leave the UK is highly likely.

Wimbledon (the tennis tournament, not the suburb), like the City of London, attracts the world’s top talent, very little of which is home-grown. But how stable will this effect be in a post-Brexit reality? And can we have some certainties about how it’s going to work, please?

English law loan documents are not likely to be scrapped if the UK leaves the European Union, but there will be changes to the docs in the event of a Brexit.

Capital Markets Union, one of the European Commission's most lauded initiatives, is likely to be one of the early casualties of the UK's decision to exit the European Union.

There are those who believe a vote for the UK to leave the European Union represents a chance to peel back onerous regulations on business and finance. Those people are in for an unpleasant surprise.

Barclays has hired a managing director from Morgan Stanley to join its distressed debt business.

The market reaction to the UK’s surprise decision to leave the European Union has been immediate with stocks falling, the pound weakening and the country downgraded by international rating agencies. But market participants are worried that the worse has yet to come and London could be set to lose its shine as a premium renminbi hub.

Balanced mutual funds and risk parity funds were among those most wrong-footed by the UK voting reject EU membership last week, according to equity analysts, while leveraged exchange traded funds amplified the market fallout of the vote.