After the Ferrovial Shareholders’ Meeting, the relocation of the emblematic Spanish company’s headquarters from Madrid to Amsterdam is imminent. 93.3% of the shareholders voted in favor of the move. The Spanish company’s choice of this city to go public reinforces the Dutch city’s role as a European financial center after Brexit. Traditionally, London has been an excellent European financial capital, but the UK’s exit from the European Union has opened up the playing field for some groups to see other jurisdictions as a place to do business and stay within the European framework. It has been suggested that some places, such as Frankfurt or Paris, are candidates to become a European financial center due to the strength of their financial markets. But these cities have a tough competitor: Amsterdam. In August 2021, the power of this city was embodied in the market reached a daily transaction volume of 8,320 million EurosIt surpassed London with 7,630 million.. Euronext Amsterdam, a city-based pan-European stock exchange, rose from 123 companies to 133 companies at the end of December 2019, just before it left England’s community club.
A total of 15 companies from 41 public offerings registered on Euronext in 2021 chose to be listed on the Amsterdam market. And five of those exits were large-cap companies (like InPost, CTO, Allfunds, UMG or Majorel). in 2022 There were 20 new international quotes on Euronext, four of which were on the Amsterdam stock exchange.. According to Euronext’s reports, one of them was large-cap (BenevolentAI) and the other two were international companies: British GP Bullhound Acquisition and American RA Special Acquisition). “Due to the increasingly international character of Dutch stock trading platforms, other financial products are also traded in Amsterdam, for example: SPAC (Special Purpose Purchasing Companies), TTF gas futures, European CO2 emission rights or derivatives on currencies” refers to the Dutch authority for financial markets.
The keys that explain the strength of this square are summarized as follows: numerous facilities for companies to set upAccording to experts, advantageous trade agreements and the use of English among the population. “After Brexit, the Netherlands has become one of the main trading centers for equities in Europe. Many monitoring companies have established themselves here and operate in the capital markets. From large trading platforms to their own traders or investment companies,” he says. Maarten Dijksma, spokesperson for the Dutch Financial Markets Authority (AFM).
Now, Seven of Europe’s nine largest trading platforms established in the Netherlands. “Two focus mainly on stock trading (CBOE and Turquoise) and four on bond trading (Tradeweb, Bloomberg, MarketAxess, CME). Euronext Amsterdam, CBOE and Turquoise currently account for around 30% of European stock trading (if United Including the Kingdom). Previously, Dutch platforms accounted for 5-10%,” explains Maarten Dijksma.
The Spanish firm Ferrovial, which currently has its headquarters, had changed several subsidiaries from the UK to the Netherlands a few years ago.. “This country has been positioning itself as an attractive location for many companies for a while because of international trade, and one of their biggest draws is its legal framework. They have one of the largest ports in the world, like Rotterdam. Additionally, Diego Morín, market analyst at IG Mercados in Amsterdam, said. It’s becoming more and more a shopping center between Europe and Asia,” he notes. And the franchise isn’t the only Spanish company to pack their bags for Dutch territory. Mediaset España, Silvio Berlusconi’s holding company MFE-Media for Europe, headquartered in Amsterdam Other companies such as Exor also established themselves in the Netherlands and left the Milan stock exchange only to be listed in Amsterdam. Pharmaceutical company Mylan also moved from the United States to the Old Continent via the Netherlands. Fiat Chrysler (now Stellantis) Other emblematic groups such as , CNH, Iveco or Ferrari have also moved to Amsterdam.
“He knew very well how to move his chips and now they have a very competitive market. We have Asian customers entering the European market through the Netherlands because of the conditions they offer.. “The authorities are very committed to bringing a case tailored to the needs of the firms,” says Jesús P. López, a lawyer and director of a Valencia-based law firm. “A smaller market than Frankfurt or Paris, but a high level Population education, tax benefits or good communication are very interesting factors for companies,” says the lawyer.
Less impact than expected
While Brexit has dealt a hard blow to the financial world in the UK, this jurisdiction remains very attractive, especially for banks. “We thought this would have a bigger impact and in 2020 some locations have moved but not many companies have left London”specifies Joaquín Robles, an analyst at XTB brokerage firm. Robles points to the Netherlands’ triple AAA credit rating as a decisive factor for Amsterdam. “Germany also maintains this rating, but favorable trade deals make Amsterdam a more attractive place for companies to leapfrog to the United States,” says Robles. Its population and steadfast commitment to technology are seen as key factors for Amsterdam to continue earning the full numbers.
London experienced a drop of up to 25.81% in 2023 in the volume of shares traded compared to 2022. In February, works worth 138,057,000 million euros were traded, compared to 183,805,000 euros traded in 2022.. For its part, up to 51,705 million titles were traded in Amsterdam last month, while up to 88,731 million were swapped in Paris. In the case of Frankfurt, no exchange data is available in recent months.