LMAX Exchange has announced it will register in Ireland if the UK government fails to preserve the UK’s access to the single market.
The multilateral trading facility for FX explained the UK is world’s FX centre, accounting for over 40% of the $5 trillion per day global FX industry.
It said the “current uncertainty about the future of single market access for the City of London, means that UK-based firms, such as LMAX Exchange have to seek regulation in EU states.”
LMAX Exchange currently has clients in over 90 countries - including 22 of the EU states – and losing access to the single market could see the exchange lose 25% of its current client base.
David Mercer, chief executive officer at LMAX Exchange, explained the effect to the economy could be severe.
“Lost capital markets revenue and associated taxation income could be catastrophic for the UK,” he added.
LMAX Exchange said it believes the UK could remain a global hub for capital markets, “but sadly this will not be enough if regulatory equivalence is not maintained.”
The exchange plans to begin regulatory filings in January 2017 if no government assurances are received.