Reuters to move forex derivatives to Dublin due to Brexit

The group hope to move operations to Dublin.

Thomson Reuters (NYSE: TRI) has announced plans to move foreign exchange derivatives trading from London to Dublin in response to Brexit. 

The group has applied to the Irish central bank for a licence so they are able to continue to sell into the EU’s single market following the UK’s departure from the EU in March 2019.

“We expect that RTSL will not be able to continue to access the EU market after the Brexit date due to the anticipated termination of passporting rights into the EU,” said Reuters Transaction Services Limited.

“Therefore, by establishing a new legal entity in Ireland and seeking authorisation from the CBI (the Central Bank of Ireland), Thomson Reuters will be able to continue to sell and market regulated trading services into the Single Market.”

“We will endeavour not to place any additional requirements or burdens on our clients, thus ensuring a full continuation of services without disruption.”

The group’s forex derivatives arm trades over $300 billion (£221 billion) every day, and the movement to Ireland will be a blow to London where foreign exchange trading is an important component of the capital’s financial services industry.

The group is currently in the process of being bought by Blackstone (NYSE: BX) in a $17 billion deal. 

“We are delighted to partner with Thomson Reuters in continuing to grow the financial and risk business,” Joe Baratta, Blackstone’s global head of private equity. “This is a landmark transaction for Blackstone and our investment partners.”

Jim Smith, president and chief executive officer of Thomson Reuters, said: “Blackstone’s strong relationships in the financial services industry and long and successful history of corporate partnerships will help F&R provide new and innovative products and services.”

Bank of America (NYSE: BAC), Citigroup (NYSE: C) and JPMorgan (LON: JMC) will carry out the debt financing.