Deutsche Bank shifts business out of London ahead of Brexit
Deutsche Bank has moved a large part of its euro clearing activity to Frankfurt from London in the latest sign of rival European cities seeking to divert business away from the City ahead of Brexit.
Euro clearing is the system through which euro-based financial transactions are settled, and London is known as a leader in the clearing business. Clearing house LCH, owned by the London Stock Exchange, previously dominated the market, processing almost £900bn in deals per day.
The shift, first reported by the Financial Times, is a victory to Deutsche Boerse’s goal of winning a large part of the euro clearing market from London as Britain leaves the European Union.
“Deutsche Bank has begun to clear large parts of its euro derivatives trading with Eurex Clearing,” a spokesman said.
The bank was quick to emphasise that no jobs have been moved out of the City. Stefan Hoops, the bank’s global co-head of institutional and treasury coverage, told the FT: “It’s the same London-based person who clears a transaction. We’re just using a different clearinghouse.” (continues…)