Brexit's impact on contract market?

[BlasterBates]

Looks like Banks will be shifting operations to Frankfurt.

Brexit: Firmen drängen an den Main | BrexitÂ*- Frankfurter Rundschau

Basically the mayor of Frankfurt is now getting enquiries from Banks who want to move to Frankfurt.

I suspect there will be similar enquiries in Dublin and Paris.

[FatLazyContractor]

Let me try. The economy booms as China, India and the US rush to do trade deals with a superpower Britain. Sales of Spitfires and Austin Allegros soar as England wins the World Cup. Hot crumpets and warm beer are in fashion again as immigrants pile on planes to be deported. The NHS get millions of pounds a week extra. All contractors are on a 1000 pounds a day

Will polygamy be legalised?

[WTFH]

Will polygamy be legalised?

You mean it's not?

[bobspud]

Looks like Banks will be shifting operations to Frankfurt.

Brexit: Firmen drängen an den Main | BrexitÂ*- Frankfurter Rundschau

Basically the mayor of Frankfurt is now getting enquiries from Banks who want to move to Frankfurt.

I suspect there will be similar enquiries in Dublin and Paris.

Why didn't anyone else notice this was already on the cards when the two exchanges decided to merge? This is all being laid on the leave camps feet but my gut says Frankfurt was always an end game for someone...

[BlasterBates]

Why didn't anyone else notice this was already on the cards when the two exchanges decided to merge? This is all being laid on the leave camps feet but my gut says Frankfurt was always an end game for someone...

Has nothing to do with that, the mayor recieved the enquiries at the weekend after the vote and the companies are telling him it's because of Brexit.

In any case the deal with the London stock exchange would have meant the new exchange being in London. That deal has to go through a rethink.

https://www.theguardian.com/business...vote-uk-german

The combined deal would have meant operations moving to London not the other way round, now it looks like they'll have to have two Head Offices, one in London and the other one in Frankfurt.

[FatLazyContractor]

You mean it's not?

Bradford != UK

[WTFH]

Bradford != UK

I'd better have a word with The Wife (tm)'s other husbands...

[bobspud]

Has nothing to do with that, the mayor recieved the enquiries at the weekend after the vote and the companies are telling him it's because of Brexit.

Yes but they were going to join the exchanges. What exactly did you think would be the impact of that happening, given that banks already pay millions of pounds per square foot just to get near the same DC as the LSE market systems? Were would you logically start to look to place your trading IT if you had another exchange a thousand miles up the road that can now trade the same instruments? (just as a hint if your trading software sends the trade request to both exchanges at the same time the LSE will see the request and some clever bugger will already have arbitraged your trade request in Frankfurt before you make the trade.

[BlasterBates]

Yes but they were going to join the exchanges. What exactly did you think would be the impact of that happening, given that banks already pay millions of pounds per square foot just to get near the same DC as the LSE market systems? Were would you logically start to look to place your trading IT if you had another exchange a thousand miles up the road that can now trade the same instruments? (just as a hint if your trading software sends the trade request to both exchanges at the same time the LSE will see the request and some clever bugger will already have arbitraged your trade request in Frankfurt before you make the trade.

That they would consolidate in London, that was there stated intention, why else would they have intended to domicile in London if their intention was to have their operations in Frankfurt ?

The reason the banks are moving is so they can conduct transactions for clients in the EU, because on Thursday there was a referendum on the EU in the UK and the result was to leave the EU and in the future that will be impossible out of London.

In the EU you still have to be domiciled where your operations are for tax purposes. You can't be domiciled in London and have your staff in Frankfurt.

[bobspud]

That they would consolidate in London, that was there stated intention, why else would they have intended to domicile in London if their intention was to have their operations in Frankfurt ?

The reason the banks are moving is so they can conduct transactions for clients in the EU, because on Thursday there was a referendum on the EU in the UK and the result was to leave the EU and in the future that will be impossible out of London.

Stated intention and actual intension are two different things though. I watched news night as well and the message that I could see was Frankfurt was smaller and cheaper and in the middle of Europe. I really cannot see why most of the European work wouldn't move there under a merger. It's simply too much of a temptation for a bank that is paying top dollar to be further away from the market they are trading on so some of that work would have always found its way back to the EU.

I don't doubt that there are banks starting to plan for the worst. But if the UK bites down on a Norway deal nothing has changed for the banks so why would they spend billions moving?

There are a little too many knee jerks at the moment and not enough facts.

So here is a fact for you to enjoy over a beer or coffee. Go and source a copy of the TeleGeogrphy Maps that Equinix periodically produce. It shows the world wide Fibre distribution together with lit capacity and consumed. The number of cables that fall out the bottom of England compared to the rest of Europe is staggering. Despite what the racist little twerps like Junker have to say about what he wants to do to england for leaving we are hard wired into the centre of the world. Go and look for yourself. Its taken most of my life for that infrastructure to be laid and it has cost a fortune.

in the next few months clever little gits like me will be walking into boardrooms with charts like the one I describe and explaining why moving to the EU will brake the capacity and latency of the trading systems and that there is nowhere near enough fibre running out the coast of the EU to other countries.