By Pádraig Hoare
The decision of Thomson Reuters to move its €253bn daily foreign exchange derivatives trading business to Dublin from London has been hailed as a “powerful calling card” for Irish financial services.
IDA chief executive Martin Shanahan said the firm’s decision to choose Dublin over Amsterdam for its frontline trading was “very significant in terms of our ability to attract top international brands” as the Republic positions itself as a global financial services base.
Thomson Reuters has applied to the Central Bank to move its foreign exchange multilateral trading facility (MTF) to Dublin so that it can continue to sell into the EU’s single market, said the company.
The firm’s co-head of trading, Neill Penney said there were no plans to move staff from London but that it would hire new employees in Dublin after the move was made.
Thomson Reuters chose Dublin over Amsterdam because it was the most cost-effective and would minimise client disruption, he said.
The firm did not disclose how many new jobs would be created, but Mr Penney said Dublin’s growing role as a centre for financial technology and research would “open a number of doors” should it want to expand.
Mr Shanahan said: “This provides IDA Ireland with another powerful calling card for new types of business within international financial services and points to Ireland’s attractiveness to international financial services business.
“Ireland has the right mix of regulation, skills, experience and office space to make us a very logical place for financial services to locate.
Enterprise Minister Heather Humphreys said the Republic was “a very attractive base in the eurozone for these companies”.
“We will continue to pursue new investors in this sector,” she said.
Thomson Reuters’ announcement was followed by Legal & General Investment Management (LGIM) confirming its Dublin management company, LGIM Managers Europe, has been authorised by the Central Bank.
This reinforces LGIM’s commitment to Europe and to its clients in the region, the firm said.
LGIM announced in May 2017 its intention to set up a management company in the Republic to manage its UCITS, a type of mutual fund, and alternative investment funds in the EU.
The Irish business will leverage LGIM’s wider operations in the UK, the US and Asia, the firm said.