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JPMorgan (JPM) Opens New Trading Hub in Paris Post Brexit

JPMorgan JPM has chosen Paris as its main trading hub for all of its European debt trading in a push to shift jobs out of London after Brexit. Yesterday, France’s president Emmanuel Macron inaugurated the bank’s new headquarter in the city, which has six trading floors and is expected to witness a daily trading volume of $300-$400 billion, per JPMorgan’s CEO Jamie Dimon.

The new premise in Paris is connected to JPMorgan’s existing offices on the Place Vendome, and is close to the Louvre museum and Tuileries gardens.

Dimon stated, “All European trading, which is stocks, bonds, and derivatives will be going through here.”

Notably, the Wall Street giant now aims to have 800 staff in its Paris office by the end of 2022, marking an increase from 260 in early 2020.

Although initially JPMorgan was not very keen on increasing its presence in Paris because of the French labor laws, now, it views the city as a key financial hub for conducting business within the European Union post Brexit.

Along with Paris, JPMorgan has big trading hubs in Amsterdam, Dublin and Frankfurt.

Like JPMorgan, other financial institutions have also been implementing post-Brexit plans and are relocating staff to the different financial hubs in the continent. While there are a few options available, Paris has been particularly chosen widely as a hub for investment bank sales and trading.

Goldman Sachs GS has signed a lease in Paris to open a stock trading venue, which will go by the name SIGMA X. Also, Bank of America BAC has boosted its local hiring effort in Paris. Furthermore, HSBC Holdings HSBC announced last year that it was moving as many as 1,000 jobs to France from Canary Wharf.

So far this year, shares of JPMorgan have gained 21.3% compared with 27.5% growth recorded by the industry.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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