Thomson Reuters are moving forex trading to Dublin
A number of electronic bond and forex trading platforms have announced plans over the last year to move their trading businesses from London due to the UK’s planned exit from the EU next March 2019. That list has just grown with the news that Thomson Reuters has announced plans to relocate its foreign exchange derivatives trading to Dublin from London.
The company has already commenced the process by applying to the Central Bank of Ireland for authorisation to operate the business in Ireland. The decision to relocate the trading facility is a direct result of the UK’s Brexit plans, Thomson Reuters had said. The company said it will transfer all existing client relationships as well as Fixed Income Callouts and Auctions, from RTSL to its new Irish legal entity ahead of the Brexit date.
The new Dublin based operation will be used to cover Thomson Reuters’ derivatives business, which is one of the largest in Europe, trading more than $300 billion per day.
Thomson Reuters highlights the issue that its customers would be unable to utilise EU passporting rights post Brexit as the primary reason for their decision to set up in Dublin. The move will result in Thomson Reuters ending its UK regulated licence to trade derivatives in the EU.
Dublin chosen over Amsterdam
Concerning the choice of location, Neill Penney, co-head of trading at Thomson Reuters said Dublin was chosen over Amsterdam because it offers greater continuity for clients, as well as being the most cost-effective solution. Other trading companies such as; Virtu Financial, Citadel Securities and Susquehanna have made Dublin their legal home. The announcement follows decisions from a number of banks and law firms to establish a presence in Ireland. Last week DLA Piper announced it was also opening an office in Dublin.
Martin Shanahan, CEO IDA Ireland
Commenting on Thomson Reuters move, Martin Shanahan, CEO IDA Ireland said:
“Thomson Reuters’ choice of Ireland is very significant in terms of our ability to attract top international brands that have influence and reach.”
"This provides IDA Ireland with another powerful calling card for new types of business within International Financial Services and points to Ireland’s attractiveness to international financial services business…"
"Our track record, pro-business environment, highly skilled talented workforce and an unwavering commitment to the European single market continues to appeal to investors."
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