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The Swiss bank’s multilateral trading facility is “taking the calculated gamble’’ that there will be a deal allowing European Union equities to be traded in London after the U.K.’s departure, according to Richard Semark, head of UBS MTF.
“We may be the only venue to continue offering continental European equity trading in London and we see that as an opportunity,’’ he said in an interview.
Most traders using UBS’s equities venue are outside the EU and are not required to trade on an approved European exchange, said Semark. UBS’s multilateral trading facility hosts about 1 percent of European equity trading.
The Swiss bank’s approach contrasts with larger rivals, which are putting the finishing touches to plans to move a large chunk of trading out of London to guarantee client access regardless of the Brexit terms.
Last week, Cboe Global Markets Inc. said it would move non-U.K. and Swiss stock trading to Amsterdam to make sure liquidity is maintained for the 7 billion-euro-per-day ($8 billion) business. Aquis Exchange Plc, which received regulatory approval from Paris last week to run an equities venue in the French capital, will also move the Europe portion of its 1.2 billion-euro per-day stock trading out of London on March 29. [...]