Amsterdam displaces London as the main trading center for stocks in Europe, as a result of Brexit. The historical relationship between the English and Dutch royal houses is known, but specifically in January an average of 9.2 billion shares were traded per day in Euronext Amsterdam and the Dutch subsidiaries of CBOE Europe and Turquoise, more than 4 times more than in December .
Amsterdam Stock Exchange emerges as the winner, at least so far, of Brexit.
London Stock Exchange waiting for a negotiation with the European Union to try to recover what it is losing.
The Paris Stock Exchange also has its ambition in the redistribution of businesses that should occur due to the loss of importance of London.
In January, Amsterdam surpassed London as Europe’s largest equity trading center, and the Netherlands took over business lost to the UK since Brexit.
Volumes in London fell sharply to € 8.6 billion, dislodging the UK from its historic position as the main hub of the European market, according to data from CBOE Europe.
The change was prompted by a ban on EU-based financial institutions from operating in London because Brussels has not recognized that UK exchanges and trading venues have the same supervisory status as its own.
Without this so-called equivalency to facilitate cross-border transactions, there was an immediate transfer of deals to the EU worth € 6.5 billion when the Brexit transition period ended at the end of last year. Half the amount of business London banks and brokers handled.
Big winner is Amsterdam Euronext.
Euronext NV is a pan-European stock exchange based in Amsterdam. It was established in September 2000 as a group of European stock exchanges derived from the merger of the Paris Stock Exchange, Amsterdam Stock Exchange and Brussels Stock Exchange.
It is represented in Belgium, France, the Netherlands, Portugal, Dublin, Oslo and the United Kingdom.
CBOE Europe also celebrates. Chicago Board Options Exchange (CBOE) is the largest options market in the USA.
Its owner, CBOE Global Markets, operates 4 options exchanges, 7 stock exchanges, 1 futures exchange and 1 forex market.
Since 2008 it has had CBOE Europe, with operations in London and Amsterdam.
About Turquoise, it is majority owned by the London Stock Exchange Group, in association with 12 investment banks.
Fue creado in 2008 by a consorcio of BNP Paribas, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, Merrill Lynch, Morgan Stanley, Société Générale y UBS.
During 2020 it developed a contingency plan that allows it to operate the LSEG market on Amsterdam.
According to the Financial Times, “analysts and executives say the transfer would not mean thousands of jobs will leave London, while the fiscal impact would be limited to the effects the move in trade would have on the profits of the companies involved, they said. Financial services contributed nearly £ 76 billion in tax revenue to the UK Treasury last year. “
Anish Puaar, market structure analyst at Rosenblatt Securities in London, put it all down: “Fund managers will be more concerned about the availability of liquidity and the costs of making a trade, than whether an order is executed in London or Amsterdam.” .
Paris (France) and Dublin (Ireland) also saw small increases in business in January, through the EU operations of Aquis and Liquidnet respectively, rather than through London.
In response, London has lifted the ban on trading in Swiss stocks such as Nestlé and Roche, currently banned from EU exchanges.
Still, the big move in stock trading to Amsterdam makes the city a Brexit winner.
Amsterdam has also recovered activity in the swap and sovereign debt markets that would normally have taken place in London before Brexit.
CBOE Europe is setting up a derivatives trading business in the Dutch capital in the first half of the year.
The US-based Intercontinental Exchange is also moving the € 1 billion a day carbon emissions trading market to the Netherlands, although the offset will remain in London.