Euronext, a pan-European stock exchange operator, has opted to pull a key part of its business from London since the UK is no longer a member of the EU. The firm’s data center has been based in London for a decade, but its boss has decided to shift the hub to Bergamo, Italy to ensure it remains “at the heart of European markets”. Stéphane Boujnah, CEO of Euronext, said his firm is simply following the new “trend” where European businesses are opting to leave the London market.
Euronext had based its core data center, where the physical infrastructure of trades is executed, in London since 2011.
However, the firm has just announced plans to shift its data center to Bergamo by the second quarter of 2022.
Mr Boujnah told the BBC the move was about bringing the firm “back within the European Union”.
He described the UK as now being a “third country” and said the move was about ensuring Euronext was based in a more predictable market.
He said: “We want to have a critical part of our infrastructure within a predictable regulatory environment.
“And we have no visibility as to what will be the future of regulations applying to circulation of data between the European Union and a third country like what the UK has become post-Brexit.”
When asked if he thought more banks will decide to pull London operations, Mr Boujnah said the move was already underway.
He said: “Well the trend has started, as you know, since the beginning of the year, a significant amount of equity trades have migrated to the European Union.
“And anyone, post-Brexit, who wants to make business on European stocks, to serve European-based companies, has to establish operations within the EU.”
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