 has moved a considerable part of its euro clearing operations to Frankfurt from London because of Brexit. The German Bank confirmed the move to the Financial Times, in a blow to the city's status as a global financial centre. ){kind=link}
Deutsche Bank (ETR:DBK) has moved a considerable part of its euro clearing operations to Frankfurt from London because of Brexit.
The German Bank confirmed the move to the Financial Times, in a blow to the city’s status as a global financial centre.
Last year the EU published a proposal that detailed plans to relocate euro clearing outside of London.
As it stands, the UK capital is the leader of euro clearing processing transactions worth around €1 trillion (£880 billion) daily.
According to the EU proposal, should the European Securities and Markets Authority decide that a clearing house outside the EU is dealing with “systemically” important volumes of euro-centred trades, tougher supervision controls would be put in place.
Any “systemically important” business which may affect levels of financial stability, may be forced to relocate to Europe as a result.
Deutsche Bank is one of the leading five clearers of interest rate derivatives. The bank confirmed its plans to move a “large part” of the business to Eurex, its European-based clearing division, in what it called a ‘symbolic’ move.
A spokeswoman for Eurex confirmed that it now has a market share of 8 percent of euro clearing, up from virtually zero a year ago, still relatively small compared with London’s LCH.
“Our focus for the next six months will be to increase buy side activity based on the good price quality provided by the banks participating in our partnership program,” Eurex said.
Shares in Deutsche Bank are currently trading +3.39 percent, as of 13.06AM (GMT).