UBS likely to favour Frankfurt for EU trading hub

ZURICH: UBS Group AG is leaning toward Frankfurt for its trading headquarters inside the European Union after Brexit, according to four people with knowledge of the matter.

The Swiss firm’s investment bank employs about 4,800 bankers globally and could move 250 or more jobs out of London to Frankfurt and other European locations, two of the people briefed on the deliberations said, asking not to be identified as the talks are private. UBS has notified the German regulator that it may increase its business in Frankfurt, the people said. No decision has yet been made and the numbers could still change, they said.

Frankfurt has emerged as the biggest winner in the fight for London-based investment-banking jobs that may have to be relocated to new hubs inside the EU in preparation for the UK’s exit in 2019. Standard Chartered, Morgan Stanley and Nomura Holdings Inc are all expanding their presence in the city.

The bank, which has yet to make a final decision, has also discussed moving positions to discussed creating several hubs across the EU, two people said. The bank declined to comment, as did the German regulator, known as Bafin.

Chief executive officer Sergio Ermotti said earlier this year that Frankfurt was “a location of choice,” and that he was also considering locations including Amsterdam and Madrid, adding that he will make a decision by the end of summer. Investment banking head Andrea Orcel has said that UBS has shortlisted a number of locations including the Spanish capital.

Banks are still examining the potential costs of Brexit as negotiations for the departure of the UK continue. — Bloomberg