London Broker Numis Plans Post-Brexit Hub for European Clients
(Bloomberg) -- Numis Corp. will open an office within the European Union to pursue business that would otherwise be cut off after Brexit.
The London-based broker, which offers mostly small- and mid-cap U.K. equities, plans to open an entity in the bloc within the next 12 months, according to a regulatory filing Tuesday.
“Brexit will have a minimal impact on our financial performance in the short term, however we believe comprehensive EU market access is strategically important for the business in the longer term,” the company said.
Numis, which derives less than 5% of institutional income from EU-based customers, has been making use of temporary permissions, where possible, to trade with some clients in the bloc since the U.K.’s departure became effective on Dec. 31.
The financial industry was largely absent from Prime Minister Boris Johnson’s trade deal with the EU in December. Large banks spent years establishing offices in the EU to ensure business would continue under any form of Brexit, though some firms including TP ICAP Plc have found gaps in their plans since the beginning of the year.
Numis reported a strong start to the year on Tuesday, saying revenue was 50% ahead of the same period a year ago in the four months through January, as progress on vaccines and more certainty around Brexit supported strong execution commissions and trading gains.
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