Frankfurt is emerging as the biggest winner from last year’s Brexit vote, with many of the world’s biggest banks choosing to base their new European Union headquarters in the German city.
Standard Chartered Plc, Nomura Holdings Inc. and Daiwa Securities Group Inc. have picked Germany’s financial capital for their EU base to ensure continued access to the single market. Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley are weighing a similar decision, said people familiar with the matter, asking not to be named because the plans aren’t public.
“Frankfurt is well-positioned to receive foreign banks,” said Stefan Winter, chairman of the Association of Foreign Banks in Germany and head of UBS Group AG’s investment bank in the country. “It’s in the heart of Europe, has fantastic infrastructure and affordable office rents.”
Frankfurt is a natural pick given a financial ecosystem featuring Deutsche Bank AG, the European Central Bank and BaFin, seen by many as the only regulator outside of London capable of handling the banks’ complicated derivatives business. Even as prospects for a U.K. deal maintaining some sort of access to the single market gain traction, banks are still preparing for the worst and want to have new or expanded offices up and running inside the bloc before the U.K. formally departs in 2019.
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