Daily Management Review

Deutsche Boerse preparing to reduce its footprint in London after Brexit


10/09/2017


While the LSE’s LCH unit has been the predominant clearing house for IRSs in Europe, with Brexit’s growing uncertainly, banks including Deutsche Boerse are taking steps to move voluminous transactions to Eurex, German clearing unit.



Under the threat of Brexit, banks which service cross-border markets are increasingly feeling pressured over growing uncertainties.

In order to mitigate these pressing concerns, Deutsche Boerse has introduced a profit-sharing scheme that will essentially wrest volumes from the London Stock Exchange to Eurex, a German exchange’s clearing unit.

On its part Eurex has stated it will be launching a partnership program to attract more volume in clearing interest rate swaps (IRS) in November.

IRS contracts have become more popular in the wake of Brexit, with companies using the derivatives to insure themselves against adverse moves in borrowing costs.

The London Stock Exchange’s LCH unit has dominated the IRS scene in Europe.


 


 


 


 


 

Source:

https://www.reuters.com








Science & Technology

Europe overtakes US by number of patents for self-driving car technologies

Samsung introduces display technology for folding screens

How retailers use technologies to increase sales

Facebook releases videochat devices Portal and Portal Plus

Smartphone makers will pay for pre-installing Google apps‍

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

World Politics

World & Politics

Brexit Negotiators Of Both Parties Close Down On Irish Border Text, Reports RTE

Bloomberg: Theresa May can face catastrophic defeat in parliament

New Asian Foreign Policy May Be Set By Congress After Democrats Taking Control Of House

Italy refuses to change draft budget

Italy is about to tighten its migration policy

Macron calls to create a pan-European army

Signals Of Mending Of US-China Emerge Before Anticipated G20 Meet

Moscovici: the European Commission may impose sanctions on Italy