Monday , October 18 2021

Brexit runs bonds in Amsterdam Financial



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With this shift, London is missing an online platform that deals with 210 billion of short-term finances and bonds every month.

The reason for leaving this money market is Brexit's threat without a deal between the EU and the United Kingdom. Brexit starts in March next year.

Specifically, the BrokerTec Europe trading platform is part of the NEX group, which was acquired by the Chicago Mercantile Exchange (CME). This has already settled in Amsterdam, there are twelve people working there.

"All of our listed bonds and short-term financing travel to Amsterdam," said John Edwards, director of BrokerTec Europe, to Bloomberg. It will start trading in February next year.

Ninety people work in BrokerTec Europe in London.

The € 210 billion that crosses the stock exchange platform is a relatively limited trading volume, and experts struck in the context Tuesday night.

This is followed by approved purchases purchased last week by the Chicago Mercantile Exchange group of the NEX to $ 4.96 billion.

According to analysts, there is a high symbolic value for choosing CME, which has a market value of $ 63 billion.

This is the first major market that actually leaves London under the pressure of Brexit, the withdrawal of the United Kingdom from the European Union.

The whole market is moving

The company states that in the absence of the Brexit contract, it will soon be unable to serve its European clients from London without this shift. NEX is still waiting for the approval of supervisors.

Step in CME bonds is not by itself. AFM reported last week that around 150 platforms would like to make a step in Amsterdam for Brexit. They would represent between 30 and 40% of specific share transactions.

Previously, the CBOE, the largest stock exchange in Europe, was registered in the Dutch capital.

They are afraid of higher costs

In the spring, it became known that dozens of flash traders and market makers exercised as suppliers of services from London to the financial sector in Amsterdam.

Large exchanges have been repeatedly pointed out by negotiators on behalf of the EU and the United Kingdom that there is a danger of a dual trade flow on the island and Europe, by raising costs for business customers and ultimately the consumer.

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