Bloomberg News reports that it would be “counterintuitive” to trade euro zone products such as Italian government bonds out of London if Britain was no longer part of the EU, Cryan told investors Tuesday at a conference in New York. He also expects European markets to be volatile in the event of an exit.
“‘Longer-term, I think there would be a shift in where we conduct our business,” Cryan said at the conference organized by Deutsche Bank. “A lot of our euro zone business actually goes through London, and I would expect that over time to gravitate back to the euro zone just naturally.”
The U.K. will vote June 23 on whether to remain part of the EU. Cryan joins other financiers who have warned Brexit would spur international investment banks to move jobs or activities because some products can’t be traded outside the EU without specific agreements. Stuart Gulliver of HSBC has said the lender would likely need to move 1,000 investment bankers to Paris because they’re linked to operations governed by MiFID II, the EU rules covering everything from derivatives trading to bond pricing.
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