UK firms go Dutch to ensure post-Brexit futures
UK businesses are ramping up their presence in the Netherlands as they contemplate a post-Brexit future. The trend intensifies competition for Ireland to win business as a result of Britain's planned EU exit.
A report by Dutch thinktank, the Clingendael Insitute, said that by September, 56 companies had plans to move to the Netherlands from the UK with companies in the financial sector making up the majority of firms arriving there.
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The country has been particularly successful in attracting trading venues, markets or platforms, having won exchanges like the CBOE, Bloomberg's swaps market, and broker TP ICAP.
Also going Dutch are MarketAxess, the EU trading platforms of the London Stock Exchange, EBS and BrokerTec derivatives markets.
"Though the number of employees connected with these moves is not large, the volumes of trade which will be routed through the Netherlands as a result of these moves are," the Clingendael report said.
A second subgroup includes boutique trading firms, many of them high-frequency traders, and FinTech companies such as Jump Trading, Radix, Hard Eight, the Gelber Group, Azimo and CurrencyCloud, the report added.
So far, Dublin has been the big winner from Brexit in the financial services sector, according to a regular survey run by consultants E&Y. It says that 29 companies have said they were considering or have confirmed the relocation of operations and/or staff here.
In addition to financial services, the Netherlands is also winning key business in the pharmaceuticals sector - in part due to a decision to move the European Medicines Agency to Amsterdam from London. It is also winning key business in the media sphere, thanks to its ultra-fast broadband infrastructure.
A Japanese cluster is also starting to develop in the Netherlands, though small it includes a diverse group of multinational companies like Panasonic, Sony, Mizuho, MUFG and Shionogi.
Japanese corporate investment tends to be long term and so is highly sought after.