Bloomberg has chosen Amsterdam as the base for its trading operations in the European Union, to give it access to EU markets after Britain leaves the 27-country bloc next year.
The US data and trading group is set to file an application this week with Dutch regulators for a fully regulated EU entity that can trade fixed income, equities, derivatives and foreign exchange. It is following the path trodden by rivals US MarketAxess and Tradeweb and the UK’s Nex Group in choosing the Dutch city as its EU home.
For the past two decades dozens of trading venues for bonds and shares have used their London operation as a passport to enter markets in Europe but now face creating dual systems, after the UK’s vote. Rivals have cited a regulator that understands the trading industry, as well as a stable legal structure, transport links and Amsterdam’s position at the centre of the continent as key attractions.
“Our decision wasn’t really about the regulators themselves, it was much more around the geographic location, the infrastructure in place . . . and we also care about the competitive landscape. It’s important to be in the same place as our peers,” Ben McDonald, global head of enterprise product at Bloomberg told the Financial Times.
Mr McDonald said Bloomberg would staff the operation with a mixture of people transferring from London and new hires. The number of people likely to be based in Amsterdam is around 10. The application will be for its trading platform and reporting businesses.
Bloomberg is one of the biggest trading venues in Europe. It has traded more than €300bn in interest rate swaps in each of the first three months of the year, according to an estimate by Clarus FT, a UK data provider.