19 February 2018
Visit www.avoka.com

Brexit: Visa could move jobs to continent, LSE-Deutsche Bourse London HQ at risk

29 June 2016  |  9578 views  |  1 Euro Coin Cash

The Brexit fallout continues, with concerns rising that Visa might move hundreds of jobs out of the UK, the London Stock Exchange's merger with Deutsche Bourse could be hampered, and the City's role running euro clearing is under threat.

As the financial services sector scrambles to digest the implications of last week's referendum result, which saw the British people vote to leave the European Union, jobs and business are at risk.

According to Sky News, Visa may relocate hundreds of positions to the continent because of a clause in the recent multi-billion dollar acquisition of Visa Europe, which insists that transaction data does not leave Europe.

Citing sources, Sky says that German regulators are likely to push for Visa's UK-based data centre operations to be moved to an EU country.

A Visa spokesperson told Sky: "While we continue to monitor the situation carefully, it is premature to speculate on whether possible changes to the location of our data centres would make sense or be required."

Several big banks - including Citi and Goldman Sachs - have already warned that they will move jobs to other EU cities if the UK does not get access to the single market's passporting regime.

Another potential Brexit casualty is the plan for a London headquartered post-merger LSE-Deutsche Bourse. Felix Hufeld, boss of German regulator Bafin, says that "it is hard to imagine that the most important exchange venue in the eurozone would be steered from a headquarters outside the EU...There certainly has to be an adjustment here."

Hufeld also says that euro-based trading could go through Frankfurt, which could also soon be home to the European Banking Authority, which will have to move its base from London because of Brexit.

French President Francois Hollande has also stepped into the euro clearing debate, saying: "The City, which could handle clearing operations in euros thanks to the UK’s presence in the EU, won’t be able to do them any more."

Last year the European Central Bank lost a court case that tried to bring clearing under its regulatory control by shifting it from London to a euro-area country. However, the Brexit vote may change the landscape.

Industry veteran Hirander Misra has told Bloomberg: "Clearing is very much cross border and also depends on confidence in the clearinghouse. That said, there’s nothing stopping EU authorities from putting in pseudo barriers to entry."

Comments: (1)

A Finextra member
A Finextra member | 30 June, 2016, 11:42

On the bright side, post exodus, it will be much easier to get theatre and concert tickets in London :-)

Much, much easier to get lunch reservations in decent City restaurants :-)

Frankfurt will become a much more interesting city than it is already? :-D and Eurostar and City Airport will do a roaring trade :->

Having spent 2008/2009 in dubai during the  crash and going back today to see a bullish economy, it remains clear that the only real constant is change!  This is not a bad thing! Can we embrace change and do well  or should we talk ourselves into recession/depression? 

Getting tired of gloom so Positive Mental Attitude gets my vote today....  If we can see past the immediate uncertainty, I believe we can be fairly certain that our politicians will find the will to make the best of this opportunity to re-calibrate the EU and UK for the challenges ahead!  Of course not so hidden agendas will now be front and centre- but as the article above points out- EU clearing was already being claimed by the EU and why not!!!!  To Citi, Borse,  Goldman and Visa staff I say..  viel glück und viel segen -

Of course the moves may never happen!

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Fintech starts to reflect on the realities of Brexit

Fintech starts to reflect on the realities of Brexit

27 June 2016  |  13270 views  |  1 comments | 17 tweets | 13 linkedin
Brexit vote sends shock waves through financial markets

Brexit vote sends shock waves through financial markets

24 June 2016  |  13345 views  |  1 comments | 19 tweets | 33 linkedin
Brexit fears haunt UK fintech

Brexit fears haunt UK fintech

21 June 2016  |  13636 views  |  5 comments | 31 tweets | 22 linkedin
Visa Inc seals buy out of European business

Visa Inc seals buy out of European business

21 June 2016  |  14234 views  |  2 comments | 14 tweets | 32 linkedin
ACI Worldwide warns of UK Brexit consequences to fintech industry

ACI Worldwide warns of UK Brexit consequences to fintech industry

14 June 2016  |  14953 views  |  0 comments | 14 tweets | 12 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.vasco.comvisit www.swift.com/your-needs/instant-paymentsvisit www.ebaday.com

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
11511 views comments | 16 tweets | 12 linkedin
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
9069 views comments | 15 tweets | 13 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
8926 views 10 comments | 22 tweets | 26 linkedin
Aussie real-time payments platform goes liveAussie real-time payments platform goes li...
8818 views comments | 15 tweets | 43 linkedin
Coinbase and Visa at loggerheads over erroneous charges on customer crypto accountsCoinbase and Visa at loggerheads over erro...
7461 views comments | 12 tweets | 10 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job