LSE Applies for Dutch Trading Licence As Preparation For A Hard Brexit

By Kaihsu Tai from Wikimedia Commons

The London Stock Exchange (LSE) has released a confirmation that it has already applied for various trading licences in the Netherlands as part of a contingency plan in case of a hard Brexit.

In a statement that was released by the firm, the LSE stated: “As part of contingency planning for a hard Brexit scenario, Turquoise, TRADEcho and UnaVista have applied for a select number of additional licences to continue to offer their services to EU-27 customers from Amsterdam.”

Turquoise is a trading platform. LSE owns a majority of its shares. The platform aims to be the venue of choice for trading European equities that allows users to trade equities from 18 nations across Europe.

TRADEcho is a trade reporting service that is partly owned by Simplitium while UnaVista is a trade repository for derivatives.

The LSE is not the only exchange to relocate some parts of its business to Europe to make sure that it can continue to offer its clients with services that are available EU-wide in the event of a hard Brexit.

This week, Chicago’s Cboe Global Markets also confirmed that it was opening a base that will be located in Amsterdam.

Cboe owns the Chicago Board Options Exchange. It chose Amsterdam ahead of Dublin. The said firm is considered to be the largest pan-European stock exchange in terms of market share. It will maintain its operation in London to serve the UK market, however, Amsterdam will serve as its European base.

The president of Cboe Europe, Mark Hemsley, stated: “We believe that the Netherlands is supportive of competitive and open financial market infrastructure and we feel Amsterdam is a fantastic location to establish our EU venue.”

Both TP Icap and Aquis Exchange are currently looking at their options and discussing with regulators regarding opening bases on continental Europe.