London broker TP ICAP names Paris as post-Brexit EU hub
A spokeswoman said the decision would not result in major job moves.
TP ICAP has confirmed plans to base its EU headquarters in Paris in the hope of safeguarding its continental business after Brexit.
A spokeswoman for the company said “very few” staff would be moved as a result.
The London broker spent more than a year speaking to regulators in Amsterdam, Frankfurt and Paris, but settled on the French capital in light of the city’s large banking and asset management industry, the spokeswoman added.
The decision requires TP ICAP to change its existing Paris operations to a subsidiary, though London will remain its corporate headquarters.
An application has already been lodged with French regulators for that transition.
It makes TP ICAP – which is the world’s biggest interdealer broker – the latest to reveal contingency plans that will allow it to serve EU customers after Britain leaves the bloc.
TP ICAP will join HSBC, which has said it is on course to move up to 1,000 jobs to France.
The London broker made the announcement alongside its half-year results, which showed its statutory pre-tax profits halving from £71 million to £34 million over the six months to June 30.
That was against a 3% rise in revenue to £910 million on a constant currency basis.
Profits were knocked by a £58 million goodwill impairment charge, linked in part to the integration costs of ICAP.
Tullett Prebon completed its deal to buy ICAP’s phone-based broking business at the end of 2016 in a move creating the biggest player in the interdealer broker market, overtaking New York rival BGC Partners.
As announced earlier this year, the group said it is also facing “a number of cost headwinds” including the cost of Brexit, legal and regulatory costs, and IT security.
Chief executive Nicolas Breteau, who took the reins earlier this year, said: “We now have a clear view of the integration plan and cost base challenges and have recently updated the market with changed synergy targets and cost expectations, which I am confident we can deliver.
“There remains much work to be done in fully harmonising support and operational functions to establish a strong platform for growth.
“From 2020 onwards we will start to benefit from the organic investments we are making in the business.
“TP ICAP is a business with strong fundamentals. I am looking forward to driving the business forward, building a robust and sustainable business for the future and capitalising on our leading position in the interdealer broking market.”
TP ICAP shares were down more than 2% in midday trading.