Bloomberg’s financial services group is planning to operate a Multilateral Trading Facility (MTF), and an Approved Publication Arrangement (APA), and Approved Reporting Mechanism (ARM) in Amsterdam ahead of next year’s Brexit, but will continue to maintain its existing entities from its European headquarters in London.
According to the Financial Times, the New York-based Bloomberg group wants to maintain access to the Single Market.
Bloomberg offers fixed income, equities, derivatives, and foreign exchange trading services under EU regulations. The platform traded €300 billion a month in interest rate swaps in 2018, according to estimates by the FT.
Part of this business relies on passported authorisations to access the EU, including the MTF, APA, and ARM for the revamped version of the Markets in Financial Instruments Directive (MiFID II) trade and transaction reporting. To ensure business continuity post-Brexit EU-27 and the UK, Bloomberg said it is seeking regulatory authorisation to operate an MTF, ARM, and APA in the Netherlands.
In choosing the Dutch capital, Bloomberg follows in the footsteps of their rivals, MarketAxess, Tradeweb, and Britain’s NEX Group.
The knock-on effect for the job market is thus far negligible as around 10 new jobs will be created in Amsterdam. Bloomberg currently has about 4,000 employees in the UK.