Bloomberg: Frankfurt-London Truce Died Along With Deutsche Boerse Deal
The truce between Frankfurt and London has ended.
Deutsche Boerse AG’s takeover of London Stock Exchange Group Plc officially died last week, and with it an alliance at the heart of Europe’s biggest financial centers. As the German company plans for life without LSE, it’s back in competition with its former merger partner in over-the-counter clearing — a key business that Brexit has made even more politically charged.
Though swaps clearing overwhelmingly takes place in London, such clearing at Deutsche Boerse’s Eurex unit has been climbing in the past year, and the division said it added Germany’s KfW development bank as a member on Wednesday. Twenty years after trading of bunds moved to Frankfurt, European Union politicians are calling for the vital clearing industry to make a similar shift.