In the absence of an agreement on financial services, the European authorities demand that the City’s firms have sufficient staff on the continent to meet the demands of their European clients. The world’s largest broker has paid the price: it has to give up serving certain European clients while it strengthens its teams in Paris.
No free pass for the City. Left behind during the negotiations on post-Brexit trade relations between the United Kingdom and the European Union, the largest financial center of the Old Continent must submit to the demands of the European authorities to continue serving its European customers. The world’s largest interdealer broker, TP Icap, has just had a bitter experience. He said on Monday that he had to give up some European customers the time to strengthen his teams on the continent.
“Partly due to the extraordinary circumstances linked to the Covid-19 pandemic […] it has not yet been possible to complete the relocation of staff in the EU 27 or the local hiring of brokers in offices based in the EU, ”TP Icap said in a statement. The company does not expect a “significant impact” of this decision on its results. The 27 represent less than 10% of its activity.