London Stock Exchange prepares for a no-deal Brexit
Contingency plans are in place due to ‘the lack of clarity’ a hard Brexit will create and has applied for several trading licences in Amsterdam
Bengaluru — London Stock Exchange Group (LSE) said on Thursday it was activating contingency plans in case Britain crashes out of the EU next March without a transition deal.
The LSE said the plans include the incorporation of new entities in the EU, and applications for authorisation within the other 27 countries of the EU for certain businesses.
"The complexity and the lack of clarity of the application of a hard Brexit may decrease the effectiveness, or applicability of some of these contingency plans," the bourse operator said in a statement.
The LSE also reported a 21% rise in first-half adjusted operating profit to £480m as its clearing, capital markets and information services businesses grew strongly. Adjusted operating profit was forecast at £459m pounds according to a company-supplied consensus from 13 analysts.
The LSE also said the effects of a hard Brexit could "adversely affect" its business, results of operations, financial condition and cash flows.
The firm told Reuters last month that it had applied for several trading and trade reporting licences in Amsterdam for its pan-EU share trading platform Turquoise. The LSE, however, did not say whether it was taking any steps to combat moves by rival Deutsche Börse to eat into its euro-clearing business.
Goldman Sachs veteran David Schwimmer started his new job as LSE CEO this month, with an initial task of helping the 300-year-old institution to navigate Brexit. "My immediate priority in the coming weeks is to meet with colleagues, customers, shareholders and other key stakeholders," he said.
The LSE’s total income rose 12% to £1.06bn in the six months ended June, higher than an estimate of £1.05bn