German Banking Giant Moves Trades From London to Frankfurt Ahead of Brexit
German Banking Giant Moves Trades From London to Frankfurt Ahead of Brexit
(Bloomberg) -- An intermediary for German savings banks has moved some of its trades from London to Frankfurt, in a boost to the city’s standing as a post-Brexit finance hub.
DekaBank moved more than 7,000 swap transactions Thursday from London Stock Exchange Group Plc’s LCH clearing house to Eurex Clearing in Frankfurt, Eurex said. Clearing houses act as the middleman in complex trades, ensuring customers are protected from one side defaulting -- a service used by DekaBank for some of the 276 billion euros ($305 billion) it manages for German savings-bank clients.
The news comes two months after Eurex offered a 100% discount on fees if firms switched positions by the end of the year. The business, part of Deutsche Boerse Group AG, has added 150 clients this year. Clearing swaps has become a battleground between the U.K. and the European Union.
To contact the reporter on this story: Viren Vaghela in London at vvaghela1@bloomberg.net
To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Marion Dakers, Keith Campbell
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