[ N E W S
R E V I E W
|
B R E X I T ]
Tradeweb submitted its application
with Dutch authorities to found a
fully regulated entity in August, as
it looked to continue to serve its
global client base.
“Post-Brexit, for many investors,
uninterrupted access to that liquid-
ity requires an independent and
fully functional regulated entity
within the EU, and our Amster-
dam office will be a new expres-
sion of our mission,” said Enrico
Bruni, head of Europe and Asia at
Tradeweb.
The Amsterdam office will act
as the electronic trading hub for
Tradeweb’s EU-based clients and
the decision was made based on
the regulatory environment and
infrastructure. For MarketAxess,
chief executive Rick McVey, told
“A decentralised model will
likely be negative for the
sector… it would lead to a loss
for everyone.”
GREGORY CLAEYS, RESEARCH FELLOW, BRUEGEL
The emergence of a new EU hub
Banks and financial services firms forced into
restructuring their European footprints could
find commercial benefits to relocating more
business activity to the EU over time. Consol-
idating relationships and more solid collabo-
ration between traders and salespeople while
preserving in some cases a closer proximity to
clients has its advantages.
Cities like Frankfurt, Paris and Dublin are
now competing for business and working on
attracting firms through the revision of labour
laws, tax codes or supervisory powers. But
the emergence of a new EU financial hub may
not necessarily be driven by the banks’ choice
“Post-Brexit, uninterrupted
of relocation.
access to liquidity requires
“Should a new EU hub emerge, banks would
an independent and fully
be quick to re-orient their operations towards
that location. But, for now, the industry is
functional regulated entity
moving towards a less centralised structure,
within the EU.”
as each bank chooses their preferred location
based on their existing legal entity structures
ENRICO BRUNI, HEAD OF EUROPE
and their own business profiles and priorities.”
AND ASIA, TRADEWEB
“Some are likely to spread their operations
across a number of countries using a combi-
nation of branches and subsidiaries,” says Matt
reporters the decision to opt for
Austen, UK head of financial services at Oliver
Amsterdam was driven by the
Wyman.
ongoing uncertainty around a tran-
As the first batch of investment banks put
sitional period to ease the financial
world into the UK’s departure from their faith in Frankfurt, it is likely others will
follow. Although this does not mean the city
the EU.
“We’re hoping [no transition deal] will replace London as the EU’s financial hub.
Research fellow at European economic think-
is not the case but we’re preparing
tank Bruegel, Gregory Claeys, explains a lack
for the worst. MarketAxess means
of a hub and a shift towards a more decen-
to be fully regulated and ready to
tralised European financial sector could have
go well ahead of Brexit,” he said.
18
TheTrade
Autumn 2017