Goldman Sachs Group Inc. is transferring part of its euro options trading platform from London to Milan, the latest example of shifting roles to the continent following Brexit.
According to sources familiar with the matter, the Wall Street powerhouse is moving employees as it expands its European operations following the UK’s exit from the European Union. Sources indicated that employees will probably relocate early in 2023, and the Group will hire workers locally.
As the company finalizes the movement, the number of workers to be relocated has yet to be established, and a Goldman representative declined to comment on the same. Currently, the company employs about 80 people in Milan.
There is pressure on some of the largest banks around the world to relocate traders from the UK to EU cities like Amsterdam, Frankfurt and Paris. The European Central Bank determined that approximately a fifth of the trading platforms it assessed “warranted targeted supervisory action,” and stated in May that banks who established units in the eurozone countries are still overly reliant on activities outside the area.
This is an excellent development for Milan as well as other financial hubs in the EU.
Figtree Search partner Rusell Clarke said,
Due to changes in the regulatory framework, Milan is now capital-market friendly.
Since 2018, Citigroup Inc. has increased the number of employees it employs in Italy as a result of Brexit and a wider diversification plan. Sources indicate that the company now employs roughly 230 individuals across the nation.
Besides banks, more companies are migrating from the UK. For instance, Euronext NV moved from Basildon in London to Bergamo in Italy. According to CEO Stephane Boujnah, the company facilitates around 25% of European equity trading.
Since our clients used it themselves they all came back with a big ‘wow’ effect. It makes a big difference in the perception of Italy as a European financial hub.
Milan accounts for a small percentage of traders, with almost 85% based in London, but high net-worth individuals and fund managers are moving there because of favourable tax treatment.
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