Scottish independence and its effect on binary options
With the Scottish government publishing a draft bill outlining its second independence referendum, the finance industry is left wondering what sort of effect Scottish independence would have on trading, particularly if Brexit occurs.
In response to Brexit, CySEC immediately asked for its licensed brokers to inform them how Brexit will impact their activities. There is clearly concern for how these new trading arrangements will affect binary options.
As it stands, Scotland would be compelled to leave the EU along with the rest of the UK, meaning they would no longer have access to the EU single market. The new independence bill would separate Scotland from the United Kingdom, allowing them a chance to re-join the EU, in spite of the UK’s decision to leave it.
An independent Scotland would have to make a choice between having access to the European single market, or maintaining the free movement of goods and services across the UK border.
Scottish Prime Minister Nicola Sturgeon has already demanded that Scotland remain in the EU, and will oppose any form of Brexit. It remains to be seen whether Sturgeon would prefer to retain Scotland’s relationship with the rest of Britain, or would instead prefer to benefit from the EU single market.
Hard Brexit to hit binaries?
While the British Retail Consortium has already voiced its concerns over the effect that a hard Brexit would have on trading and investment, proposals for a second Scottish independence referendum raise fresh questions into how binary trading will change in light of Scotland no longer being bound by Financial Conduct Authority rules.
A new report published by two of the Scottish financial sector’s most distinguished figures proposes that Scotland’s £8 billion-a-year financial services industry relies heavily on serving UK clients. The report suggests that the sector could suffer even greater than they would from a hard Brexit.
With the binary options industry facing an uncertain future, let’s hope a solution can be reached sooner rather later in relation to Scotland’s trading position within the EU and the United Kingdom.