Citigroup is reportedly parting ways with its long-serving executive Jason Cohen, the head of euro swaps trading, as the US bank is boosting its operations in France ahead of Brexit, efinancialcareers reports.
The Wall Street lender revealed plans last year plans to relocate 63 jobs out of London, as it prepares for the possibility of a hard Brexit. The departure of Cohen, who has been with Citi for more than 11 years, came despite the bank’s efforts to retain as many staff members as possible, through permanent relocations to countries within the EU.
The City is pre-eminent in FX and OTC derivatives, which are used by investors to hedge their portfolios, but market participants are concerned that the pending Brexit will cause disruption in the cross-border derivatives market.
Around £440 billion of euro-denominated trade passes through Britain’s clearinghouses every day thanks to so-called ‘passporting’ rules, which currently allow them to sell their services freely across the rest of the EU and also give firms based in Europe access to Britain.
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Ready for all possible outcomes
The French capital, home to several EU entities, has emerged as one of the favored destinations for many global financial institutions that will have to be relocated to new hubs inside the European Union after Brexit.
Citigroup has been considering the move for months as the investment bank was taking steps to minimize disruption to its clients. However, Paris wasn’t the only financial hub in the sights of the US banking giant, as the firm was evaluating other locations too, including in Frankfurt and Dublin.
In addition, other global lenders have already said that they will begin the second wave of moves from London early next year
Earlier this year, the BoE told banks and other financial institutions to submit their Brexit plans and to be ready for all possible outcomes, including a hard Brexit. Estimates of the impact of the worst-case scenario on the jobs figures vary, but some reports expected that London could lose up to 250,000 financial jobs.