Brexit update: Second UK EU Referendum FAQs

11 July, AtoZForex – The petition that was set up for a second UK EU Referendum exceeded the number of required signatures and now well above 4 million signatures. So, what does this mean for the overall market and traders? This petition does not close until 6 months after it was started. Once this is closed and checks made to ensure all the signatures are genuine, then it will be put on the table for it to be debated in Parliament.

Initial responses have been emailed to all those who signed for a second UK EU referendum, which indicates that the UK government will respect the outcome result given by the British people.

Why is there a request for a second UK EU Referendum?

A lot of people who voted to Leave feel strongly that
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a) They were lied to and,

b) That many did not want to leave the EU and was a protest vote towards the UK government’s immigration policy.

What is the Legal perspective of Referendum result?

1) It is not legally binding.

2) Referendums are advisory.

I understand the legal position has also been put forward to the UK government.

What I believe will actually happen?

1) A new UK PM will be elected.

2) The debate on the issue of the second UK EU referendum will take place in UK parliament.

3) The Government will win as the Conservatives are in majority overall and reject a 2nd referendum to show that they are following the wishes of the majority.

When will Article 50 be triggered?

Article 50 will not be triggered before the end of 2016/ beginning of 2017. Why end of 2016/beginning of 2017? It is due to the new UK PM needs to ensure and full assessment of what UK requires to negotiate with regards to trade. Appoint relevant negotiating teams and trade negotiators.

Commonality with EU

Beware of choppy markets until Article 50 is invoked, considering that the clarity on Security issues, NATO and many other common regulations are still being progressed. At the moment the market expect for 99.9% that the UK will leave. The current games being played are delay tactics to allow for the preparation for negotiations.

Unfortunately, less well-off people will be worse off in coming years and the sad thing is they have been caught up in the rhetoric of the political elite!

What does it mean for traders?

All this is good news for us traders. To describe it in one word "volatility". Hence, it presents lots of opportunities for traders to take advantage off. Moreover, this uncertainty is predicted to last until 2023/24. Making it a long term prediction before global stabilisation.

If you have more questions for the TradingDoc related to Brexit, please let us know down in the comments section.

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