BROKER TP Icap could move almost 100 of its staff to Europe to handle a hard Brexit, chief executive Nicolas Breteau said today.
With 10 days to go until the UK is meant to leave the EU and no deal in place, the middle-man on trades between big banks and hedge funds has activated his plans to handle a worst-case scenario. Breteau said the work its UK broking desks do for EU clients would have to be shifted to places such as Paris, Frankfurt, Madrid or Amsterdam after a hard Brexit, entailing “moving some brokers on the ground”.
He added: “We’re talking less than 100 — around 4% of our brokers in a worst-case scenario. We believe that whatever happens, the UK will probably remain the main financial centre for financials and energy products but a lot will depend on the type of Brexit deal we end up having and the reaction of our clients.”
The company is also seeking approval from the French financial regulator for a subsidiary dealing with EU clients.
TP Icap’s shares jumped 11.6p, or 4%, to 315.2p today as pre-tax profits of £245 million — up 5% on last year — beat City hopes despite a tough trading environment.
Global broking revenues — the biggest part of the business — saw revenues up 3% thanks to higher volatility, which particularly aided its rates and equities division. But its energy and commodities arm was hit by weaker US markets, trade war fears and Iranian sanctions.
The firm was created via the merger of Icap and Tullett Prebon but previous boss John Phizackerley was sacked last year.
