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Exactly. They even announced they weren't going to move headquarters to Hong Kong (which is the only real alternative for HSBC, lets be honest) before the refer
by krona 10y ago
Exactly. They even announced they weren't going to move headquarters to Hong Kong (which is the only real alternative for HSBC, lets be honest) before the referendum result, saying it was mostly irrelevant.
Yes they may move some trading desks. So what? Banks do this all the time. Take for instance ING which is moving ~60 trading desks to London from Netherlands, despite Brexit.
The fact he's announced Paris as the destination seems to indicate to me he hasn't put much serious consideration in to it.
- simonh 10y agoSo don't worry about the 1,000 HSBC (and other bank's) traders that will have to move if we lose Passporting. It's OK because we're getting 60 from the Netherlands. I don't think London's status as a financial hub is seriously under threat. Most of the business we do doesn't rely on EU financial services passporting rights. But that part which does will have to move, if we lose those rights. For example clearing trades for exchanges on the continent is another area where London has hoovered up most of the business from across Europe, but those gains will have to be unwound if we lose Passporting.
- charlesdm 10y agoNot all trading activities require passporting? Most of the passporting rights have to do with sourcing capital, not necessarily trading.
- krona 10y agoNo passporting rights exist for third-country firms under MiFID, but the position is set to change when MiFID II and MiFIR comes into force from 3 January 2018.
- simonh 10y agoInteresting, I wasn't aware of that thanks. I just did some reading up. However it looks like to be eligible the UK would have to effectively rubber stamp all the EU's financial services regulations into UK law, but of course without any of our current influence as a member over drafting it. So much for winning back Parliamentary sovereignty!
- Chris2048 10y ago> It's OK because we're getting 60 from the Netherlands. No, that wasn't the argument. It's that those 60 cast doubt on the scale of the 1,000+
- renaudg 10y ago> The fact he's announced Paris as the destination seems to indicate to me he hasn't put much serious consideration in to it. Paris is the first financial centre in the Eurozone, closely followed by Frankfurt, so why do you say that ?
- anizan 10y agoI can't find the source atm, but there was an article on how it would take 300 years for schools in Paris to fill the admissions required for children of bankers.