This Is Everything You Need to Know About Brexit

From "hard Brexit" to clearing, our QuickTake guides make sure you always know what people are talking about.

Brexit Offers ‘More Challenging Environment Ahead’

Britain's vote to leave the European Union in the June 23 referendum has created a ton of questions. What's a hard Brexit? Why is Article 50 important? How will the vote affect me?

Bloomberg News published a series of explainers answering some of these key questions. You can find each of them below.

Nine things you need to know about a ‘hard Brexit’

The vote to leave the EU opened a series of questions about the next steps for the U.K. Particular interest surrounds the government's negotiation stance and whether it is now angling for a "hard" or "soft" Brexit - a shorthand reference to the relationship the U.K. may have with the EU after it leaves.

This is the one-stop shop for everything you need to know about a hard or soft Brexit.

What's the Great Repeal bill, anyway?

EU law has impacted British business and trade for more than 40 years, so a sudden exit from the organization could pose significant questions for U.K. companies. As a solution, Prime Minister Theresa May announced a huge legal shakeup at the Conservative party's annual conference and said the government plans to pass a Great Repeal Bill.

This would lead to two things: all EU law would cease to apply to the U.K. and simultaneously the "body of existing EU law" will be converted into British law. Could it get complicated? Yes.

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Will Brexit trigger an exodus of banks from London?

Britain's capital has flourished as a central financial hub from which to do business with the 27 other EU member states over the last 20 years. But the Brexit vote has put that status at risk, and the head of the British Bankers Association said some banks could start moving some operations in a matter of weeks.

Whether banks really do shift entire operations out of London depends on a variety of scenarios, although a lot of it is down to whether Britain — or at least its financial institutions — retain access to the single market.


What's passporting, and why does it help banks?

Passporting refers to the rights of companies authorized in one country of the European Economic Area to sell their products and services throughout the bloc, accessing a $19 trillion integrated economy with more than 500 million citizens. There isn't one passport, but rather sector-specific agreements covering everything from insurance to asset management.

This means that banks can base their European headquarters out of one major city, such as London, and have smaller satellite offices elsewhere. Britain could rely on an alternative "equivalence" system if it loses its passporting rights, but that brings its own concerns.

Financial clearing work is up for grabs

Traders in stocks, bonds, commodities and derivatives rely on clearing to complete their transactions safely. Clearinghouses act as intermediaries between buyer and seller, requiring traders to post collateral — cash or bonds — as a cushion against losses and potential defaults. But immediately after the Brexit vote, the location of trades done in euros became a flash point in the talks.

Both Paris and Frankfurt want a slice of the action, but don't count London out just yet.

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