I think the article is referring to the possibility of there being no agreement on London clearing the €1000bn worth of euro denominated trades per day after Brexit. Clearing is the crucial plumbing behind the world financial infrastructure and London is the dominant player in Europe. Why? Because London is safe, transparent, highly regulated and competent. Paris, Rome and Frankfurt are not. So what, shift it to Frankfurt anyway? Well, for starters, who would regulate? The ECB or the national central banks? If the vindictive European Commission decides then they have trouble, the market will fragment, and just move to New York within the blink of an eye. Sorry, but that’s how markets work. Oh and btw the US regulators have no problem with London clearing houses that handle US$ denominated instruments, including direct access to sensitive data, so why should the EU? Because, just like the trade agreements, they are slow, stupid & politically driven.
The UK really needs to mobilise a *war cabinet* quickly to deal with Brexit. If you want the answers, try this: John McDonnell’s social welfare blitz is actually correct and should be implemented —- yes there is a magic money tree it’s called MMT –— how do you pay? You needn’t worry about the veracity of HMRC to retrieve every single dollar within a short cycle. Start mobilising industry to replace all the EU suppliers from trains to glass to ships. Good quality copies of German machines are cheap as chips in China. Next, send Boris & Davis to India, China, Canada, Japan & Australia and start swapping UKs *services* for their goods & produce. Lastly, make the young innovate with AI & robots and the old get paid to socialise & deliver social services. The EU can yelp, scream & demand all they like, the world will just trade without them.