TD Picks Dublin for Bond Trading Hub in Brexit Shift

  • Bank plans to have 10 people in city, start bond-trading desk
  • Firm already has licensed operation in Dublin with two staff

Ireland's Varadkar 'Puzzled' by U.K. Trade Demands

Toronto-Dominion Bank has picked Dublin for its new trading hub inside the European Union in preparation for Britain’s departure from the economic bloc.

The bank’s TD Securities unit plans to establish a bond-trading business there, subject to regulatory approval, according to a statement on the Irish development agency’s website Tuesday. The unit of Canada’s largest lender by assets already has a fully licensed operation in the Irish capital, with two employees, and plans to have as many as 10 in the city by January, the bank said. The firm currently has 300 staff in London.

London has flourished as a hub for global finance in part because firms based there have the right to do business across the 28-nation EU. British banks, as well as firms from the U.S., Japan and other non-EU countries with a base in London, stand to lose this “passport” after Brexit and may need to channel business through locations in the bloc.

Dublin is the second most popular destination -- after Frankfurt -- for financial-services companies seeking ongoing access. The city provides a low-tax English-speaking location and has similar laws and regulations to its U.K. neighbor. Barclays Plc and Bank of America Corp. have also settled on the city for their new EU hub.

“This is a great win for Ireland as we seek to deepen and expand the range of financial-services companies who are investing in Ireland,” said Irish Prime Minister Leo Varadkar in Toronto, where he is concluding a trade mission. “As we face into the challenges of Brexit, we are determined to pursue and seize new opportunities and investment projects from key companies worldwide.”

— With assistance by Doug Alexander

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