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Goldman (GS) Mulls to Open Paris Trading Hub as Brexit Nears

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The Goldman Sachs Group Inc. (GS - Free Report) is mulling to open a stock trading venue in Paris by Jan 4, 2021, with a view of continuation of services to customers despite a no-deal Brexit. Per a Bloomberg article, the company has put forth an application to French regulators.

The platform will go by the name SIGMA X, and function as a dark pool and periodic auction book. Dark pools empower trading securities, derivatives and other financial instruments privately.

SIGMA X will trade EU stocks across 15 markets, and Goldman’s original share trading unit in London will continue to list both U.K. and EU stocks. The company is yet to decide on the number of employees to be shifted to Paris.

"We want to ensure that our clients continue to have access to all of our key liquidity sources post-Brexit," said Liz Martin, Goldman's global co-head of futures and equities electronic trading.

The Trade recently reported that Goldman’s SIGMA X MTF has expanded product offerings to the emerging markets as well, including Czech Republic and Hungary.

Apart from Goldman, other financial institutions have also started implementing Brexit contingency plans and relocating staff to Paris, Dublin, as well as other financial hubs in the continent.

Paris, particularly, has been chosen widely as a hub for investment bank sales and trading. Bank of America (BAC - Free Report) is buying a new trading floor to allocate as much as 1,000 staff. Also, in January, JPMorgan Chase (JPM - Free Report) purchased a second office in Paris with a view of shifting euro-related trading operations out of London due to Brexit. Furthermore, HSBC Holdings (HSBC - Free Report) is also moving as many as 1,000 jobs to France from Canary Wharf.

Shares of this Zacks Rank #3 (Hold) stock have gained 21.1% over the past six months compared with 35.3% rally of the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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