Interactive Brokers (IBKR) to Expand in Ireland Due to Brexit
After receiving authorization by the Central Bank of Ireland to set up a new entity in the nation, Interactive Brokers Group, Inc. IBKR announced that it is planning a hiring spree in Ireland on account of Britain’s exit from the European Union that is scheduled on Feb 1.
The company’s chairman, Thomas Peterffy, stated, “We are expanding to Ireland partly due to Brexit and partly due to our plan of establishing subsidiaries around the world to support our rapid global growth. Client accounts have grown by more than 52% in a year.”
Given the rapid growth of its European business, Interactive Brokers “expects to expand its staffing substantially over the next year.” According to a Bloomberg article, the company is planning to increase staff by about 50% in a year. So far, its Irish unit has hired nearly 45 people in Dublin.
Notably, majority of the hiring in the Irish unit is expected to be done locally and not as relocations from other offices.
Recently, Interactive Brokers opened an office in Hungary and earlier in 2020 it had opened one in Singapore. Currently, the U.S. brokerage firm has entities in Ireland, Australia, Canada, Hong Kong, Hungary, India, Japan, Luxembourg, Singapore and the United Kingdom.
With very little time left for the post-Brexit transition period, almost all financial institutions that used London as a base for operations have started implementing contingency plans and are relocating staff to Frankfurt, Paris, Dublin, as well as other financial hubs in the continent.
In September, Bloomberg reported that JPMorgan Chase JPM is planning to move €200 billion assets from the United Kingdom to Frankfurt.
Goldman Sachs GS is shifting as much as $60 billion of assets and housing them in the Frankfurt-based subsidiary, Goldman Sachs Europe. Bank of America BAC is buying a new trading floor in Paris to allocate as much as 1,000 staff members.
So far this year, shares of Interactive Brokers have gained 30.5% compared with the industry’s growth of 17.9%.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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