Luxembourg Looking to Capture Outflow of UK-Banking Jobs Post Brexit

It has been roughly one month since the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum took place, and despite markets, venues, and banks having had time to prepare and process the finality, adjustments are still being made. One of the biggest upheavals has been seen across the UK’s banking industry, which had already been vulnerable due to sagging profit margins and waning revenues.

Since last October, leading investment banks in the UK such as Deutsche Bank, Standard Chartered and Barclays, among others, have been embarking on a broad-based strategy to cut costs, which saw the jettisoning of thousands of back office, technology, and trading jobs in the UK alone – regions as far away as Latin America (LATAM) also saw losses.

The Road Less Traveled

With so many job losses, many have wondered where the flow of personnel and labor would end up. To date, many new jobs have been created in Asia, long seen as the future growth Hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term for many lenders. However, UK banks may not have to look very far, as Luxembourg has surfaced as a plausible and conducive destination for talent.

The small country has operated as a rock-solid financial center, which unlike the UK in the midst of secession talks, is firmly entrenched in the EU core. Moreover, the group stands to serve as an epicenter for London-based banks that may be required to move employees to maintain continued access to the European Union’s single market post Brexit.

According to Luxembourg Finance Minister Pierre Gramegna in a recent interview to Bloomberg TV regarding the country’s prospects for incoming personnel: "We are an important international financial center. After London, we are the first and obvious choice. We have already many British players in our country."

“For banks and financial players, our message is: we do not come here to lure business away from London, we come here to continue to do business with London. We are partnering up. We’ve been doing good business together in many areas, in particular investment funds,” Gramegna explained.