What would Brexit mean for the financial markets?

On 23 June 2016, the United Kingdom will hold a referendum on whether to remain in or leave the European Union. Opinion polls suggest the outcome of the vote is uncertain. Given that no country has yet left the EU, there are no experiences of the consequences of exit to draw on. The economic implications will largely depend on the arrangements for economic relations between the EU and the UK. However, the risk of the UK leaving the EU has already pushed down the exchange rate of the pound. The status of the City of London as an international financial centre would probably weaken, and some financial actors might relocate to the euro area.