London Stock Exchange Readies Hard Brexit Move for Stock Trades

(Bloomberg) -- London Stock Exchange Group Plc’s Turquoise venue is pressing ahead with plans to shift trading of European stocks to its newly minted Amsterdam operation as Brexit negotiations go down to the wire.

Key Insights

  • If the U.K. leaves the European Union without a deal on April 12, European shares will trade in Amsterdam, Turquoise said on Monday. Meanwhile, U.K., Swiss, and U.S. shares will remain in London, echoing the plans at rival venues such as Cboe Global Markets Inc. and Aquis Exchange Plc
  • But in a twist, LSE said it would re-introduce European shares to its London exchange later this year without giving any further detail

Dig Deeper

  • Cboe delayed the opening of its Amsterdam venue in line with the delay to Brexit, which was originally due to take place on March 29
  • Negotiations on whether the U.K.’s rules are equivalent to the EU are ongoing, so exchanges have established Europe-based venues to ensure continued cross-border services between the EU and U.K.
  • Currency and equity markets are leaving London in preparation for Brexit. CME Group Inc. said it will move its foreign-exchange forwards and swaps venue, which has trading volumes of about $15 billion a day, from London to Amsterdam.

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