Credit Suisse opens first Ir­ish trad­ing floor, creates 100 jobs

The Pak Banker - - COMPANIES/BOSS -

Credit Suisse will to­day open a trad­ing floor in Dublin, which will em­ploy 100 staff by the year's end for its prime ser­vices busi­ness in Europe. Th­ese roles, lo­cated in Spencer Dock in the IFSC, have been trans­ferred from Lon­don and will in­clude 40 trad­ing, risk and cap­i­tal pro­fes­sion­als and 60 middle of­fice and sup­port roles.

The Dublin op­er­a­tion will of­fer prime bro­ker­age, prime fi­nanc­ing and se­cu­ri­ties lend­ing, all of which serve clients across global mar­kets. It will han­dle the trad­ing, cap­i­tal and risk man­age­ment for the busi­ness while the sales peo­ple and re­la­tion­ship man­agers will re­main in Lon­don due to client prox­im­ity.

This move fol­lows the Cen­tral Bank of Ire­land's an­nounce­ment in De­cem­ber that it had au­tho­rised Credit Suisse to es­tab­lish a branch in Ire­land.

Mike Paliotta, who is global head of prime ser­vices at Credit Suisse, said the de­ci­sion to re­lo­cate the roles in Dublin fol­lowed a "ju­ris­dic­tional re­view" of its op­er­a­tion a cou­ple of years ago and was not re­lated to a po­ten­tial Bri­tish exit from the EU con­nected with a ref­er­en­dum in the UK on the mat­ter later this year.

"Our de­ci­sion was made some time ago to choose Dublin so I don't see any con­nec­tion with a po­ten­tial Brexit," he said. "We've have some past ex­pe­ri­ences in Dublin and we know the fi­nan­cial ser­vices in­dus­try is strong and solid, as is as­set man­age­ment and ad­min­is­tra­tion in Dublin. Paliotta said Ire­land was also a ma­jor cen­tre for fund domi­cile, man­age­ment and ad­min­is­tra­tion. He de­clined to com­ment on which other lo­ca­tions were con­sid­ered be­fore Dublin was cho­sen but said the op­er­a­tion here would be a "key part" of its eq­ui­ties fran­chise.

"We spent a great deal of time think­ing about the best lo­ca­tion of our Euro­pean prime busi­ness. We're very com­fort­able about the reg­u­la­tory en­vi­ron­ment in Dublin, sup­ported by Finma [the Swiss mar­kets reg­u­la­tor]. The busi­ness is a strong busi­ness and we've had a lot of very good client di­a­logue around our move to Dublin." Some 40 staff are al­ready in place, with that num­ber likely to rise to 100 by the end of this year.

The move by Credit Suisse comes as Ire­land's fi­nan­cial reg­u­la­tor has ex­pressed con­cern about the "ma­jor im­pact" a UK exit from the EU could have for Ire­land's big­gest banks and has asked them to spell out how they would han­dle the risks and chal­lenges of Brexit.

Cyril Roux, who be­came Ire­land's reg­u­la­tor in Oc­to­ber 2013, has also hinted he would not ask for a se­cond term when his con­tract ex­pires in 2018. Mr Roux said Brexit could have a "very large im­pact on Bank of Ire­land" be­cause "all of a sud­den half of its busi­ness is no longer con­ducted in the EU, but out­side the EU".

"If I take an­other ex­am­ple ... Ul­ster Bank would no longer be a sub­sidiary of a bank within the EU, it would be a sub­sidiary of a non-EU bank. So in both cases I think it would have a ma­jor im­pact on th­ese banks."

The reg­u­la­tor said those large ex­po­sures had prompted his team to ask the banks to "look at the im­pact of Brexit on their busi­nesses un­der a num­ber of fronts" in­clud­ing "on their busi­ness model, on their gov­er­nance, on their fund­ing and liq­uid­ity, their cap­i­tal ad­e­quacy, their le­gal ar­range­ments".

He would not say how long banks had to re­turn their sub­mis­sions, but said it was a "nat­u­ral" part of nor­mal su­per­vi­sion. In­sur­ance firms will also be asked to ex­am­ine how they would be af­fected, he added.

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