Can Brexit Damage the European Derivative Market?
Maiorov, Jevgeni (2019)
Maiorov, Jevgeni
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019060214150
https://urn.fi/URN:NBN:fi:amk-2019060214150
Tiivistelmä
Brexit is a media term, referred to Britain leaving the European Union. His process has been initiated in March 2017 is still in progress. This research paper looks into financial consequences of Brexit, particularly the possible damage Brexit may cause to European Derivative Market.
Current research has been done with support of secondary qualitative data acquired from various resources e.g. Internet articles, books, other researches; and practical analysis of expected probabilities for different Brexit scenarios to happen. Research has aimed to help businesses and private investors to make a better financial decision concerning their risk management strategy involving derivatives on the basis of the current research paper.
The results have shown, that at the moment there is only 15,4% risk for European Derivative Market to be directly impacted by Brexit consequences. This is substantially smaller risk exposure compared to one that was associated with Brexit event even a year ago. ESMA decision to protect financial stability has greatly contributed to the potential risk reduction by mitigating the largest risk in case of no-deal Brexit scenario.
Current research has proven that at the moment European Derivative Market is relatively safe and probably will not suffer any direct damage from Brexit, however, Brexit is still active event and its consequences and expected outcome can be altered by the final Brexit day.
Current research has been done with support of secondary qualitative data acquired from various resources e.g. Internet articles, books, other researches; and practical analysis of expected probabilities for different Brexit scenarios to happen. Research has aimed to help businesses and private investors to make a better financial decision concerning their risk management strategy involving derivatives on the basis of the current research paper.
The results have shown, that at the moment there is only 15,4% risk for European Derivative Market to be directly impacted by Brexit consequences. This is substantially smaller risk exposure compared to one that was associated with Brexit event even a year ago. ESMA decision to protect financial stability has greatly contributed to the potential risk reduction by mitigating the largest risk in case of no-deal Brexit scenario.
Current research has proven that at the moment European Derivative Market is relatively safe and probably will not suffer any direct damage from Brexit, however, Brexit is still active event and its consequences and expected outcome can be altered by the final Brexit day.