(Reuters) - NEX Group (NXGN.L), one of Britain’s largest electronic broking companies, is to establish a new trade reporting unit in Sweden that will be able to serve European Union clients’ needs after Britain leaves the bloc, the head of its regulatory reporting unit said on Thursday.
NEX, which matches buyers and sellers of bonds, swaps and currencies, has applied to the EU markets watchdog to set up a European Market Infrastructure Regulation (EMIR) trade repository.
“We hope to be approved this year, which would allow us to operate in the EU 27 (the 27 EU nations) both pre-and post-Brexit,” Collin Coleman told Reuters.
NEX’s trade repository business will be used by banks and other market participants to report data on their over-the-counter derivative trades in line with EU market regulation.
The choice of Sweden marks a departure from the recent trend for financial firms’ establishing new EU units, with Frankfurt, Dublin and Luxembourg winning most of the business.
Coleman said NEX chose Stockholm as it already has a substantial presence in the Scandinavian nation, where it currently employs 147 people.
“There are the existing relationships with the in-country financial regulator... We have an existing centre of gravity there and it makes sense to use that” he said.
The firm will not be moving jobs out of Britain, but will hire locally and the wider NEX regulatory reporting unit will continue to be centred in London.
Reporting by Noor Zainab Hussain in Bengaluru; Editing by Rachel Armstrong