City of London lost $240B because of Brexit

City Of London received another blow for Brexit.

CME Group inc. has decided to move its short-term funding unit to mainland Europe as the stockbroker wants to ensure that continental Europe companies continue to use its services.

The decision taken by CME and NEX Group last week was the first major financial operator to leave the UK for the sake of Brexit alone.

"All of our euro-denominated bonds and repo deals will move to Amsterdam," said John Edwards, CEO of BrokerTec Europe. "We did not see any benefit from liquidity pool splitting. Our UK businesses will not be able to provide services to European customers."

BrokerTec is not alone in planning the worst case scenario. Stifel Financial Corp. ensures that he can continue to offer financial services in Europe by buying the brokerage of the German company MainFirst Holding AG. And BNP Paribas SA plans to move between 85 and 90 employees from Global Markets in London to other European financial centers in the case of Hard Brexit.

Currently, more than 90 people work in BrokerTec in London, according to acquaintances. One third of them are front-office, and the rest work in technological or supporting roles.

As a result of financial migration, City Of London will lose over $240B. daily turnover, only from the activity of BrokerTec. This market will be transferred to the Dutch subsidiary of CME, NEX Amsterdam BV.

Source: Bloomberg Finance L.P.

Photo: Pexels.com

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