Frankfurt: a financial hub post-Brexit?
20 June 2018 Lisbon
Image: Shutterstock
At the International Securities Lending Association’s (ISLA) 27th Annual Securities Finance and Collateral Management Conference, discussions were abound over whether Frankfurt would become the new European financial hub, post-Brexit.
Panellists debating Brexit offered multiple opinions on this, with some arguing that an industry move is a tough project, while others opined that there was little to no alternative.
One panellist explained that convincing people to move to Frankfurt will be “difficult”, with a “top to bottom review” of all processes.
The panellist said that this would not be an easy process, as “anything that big has a lot of complexity to it”.
Another panellist added that it was unlikely that “100,000 bankers” would move the Frankfurt, but noted that various firms have been setting up “interim solutions”, where they set up an office with “15 people and a server”.
The panellist said that these interim solutions are causing “trust issues”, as the European Central Bank was expecting “large groups of employees to come over”.
He said that UK firms are looking to transition over a longer period because “we can’t expect a large number of people to move over to Europe”.
What is important, he says, is that UK firms should be “open” and explain they are looking to transition over a long period of time.
Another panellist explained that Frankfurt is the ideal place to set up in Europe as it “mirrors London”.
“Frankfurt is the seventh most liveable city in the world, it has the market infrastructure and a talent pool.”
The panellist explained that people are “moving ahead, getting ready and taking this very seriously”.
“No one wants to let us fall out without a transition deal. But if you look at recent history, who would have thought that Donald Trump would become president of the US?”
“Relying on hopes and feelings is totally inappropriate at this time and the focus should be on preparing for the worst.”
Panellists debating Brexit offered multiple opinions on this, with some arguing that an industry move is a tough project, while others opined that there was little to no alternative.
One panellist explained that convincing people to move to Frankfurt will be “difficult”, with a “top to bottom review” of all processes.
The panellist said that this would not be an easy process, as “anything that big has a lot of complexity to it”.
Another panellist added that it was unlikely that “100,000 bankers” would move the Frankfurt, but noted that various firms have been setting up “interim solutions”, where they set up an office with “15 people and a server”.
The panellist said that these interim solutions are causing “trust issues”, as the European Central Bank was expecting “large groups of employees to come over”.
He said that UK firms are looking to transition over a longer period because “we can’t expect a large number of people to move over to Europe”.
What is important, he says, is that UK firms should be “open” and explain they are looking to transition over a long period of time.
Another panellist explained that Frankfurt is the ideal place to set up in Europe as it “mirrors London”.
“Frankfurt is the seventh most liveable city in the world, it has the market infrastructure and a talent pool.”
The panellist explained that people are “moving ahead, getting ready and taking this very seriously”.
“No one wants to let us fall out without a transition deal. But if you look at recent history, who would have thought that Donald Trump would become president of the US?”
“Relying on hopes and feelings is totally inappropriate at this time and the focus should be on preparing for the worst.”
← Previous industry article
‘Difficult to see opportunities’ in post-Brexit world, says ISLA panellists
‘Difficult to see opportunities’ in post-Brexit world, says ISLA panellists
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