This may include advertisements from us and 3rd parties based on our understanding. The European Central Bank has been trying to reduce the number of banks serving EU clients from the UK in the wake of Brexit. Back to back trading is a practice known as back-to-back trading.
As the ECB's desk-mapping exercise begins its final phase in the coming weeks, the banks could be under pressure to move staff from Britain to the bloc. The European Central Bank has been evaluating the EU arms of US banking giants, including JP Morgan and Goldman Sachs. Insiders told the Telegraph that JP Morgan and Goldman Sachs have already increased their EU workforce by 1,800 due to the Brexit. The increase was due to a combination of relocating London bankers and new hires.
The Bank of America Merrill Lynch has added 500 positions on the continent. Morgan Stanley has increased EU staff by 300. It comes as the ECB has been looking to tackle the back-to- back trading practice of banks serving EU clients while keeping staff and capital in the UK. The ECB enters the final stage of its desk-mapping review next month. READ MORE: French economist admits that Brexit is 'not a catastrophe as predicted'