LONDON (Reuters) – Nearly all UK-based clearing of euro-denominated repo and government bond trades moved to Paris this week, the London Stock Exchange’s clearing arm said on Thursday in a step partly aimed at easing European Union concerns ahead of Brexit.
LCH’s dominance in London of clearing euro-denominated trades has become a political battleground as Britain prepares to leave the bloc next month, taking it outside EU financial law.
Paul Elkins, head of product development at RepoClear LCH, said its Paris clearing operation handled more than 700 billion euros ($793.24 billion) of euro-denominated repo and government debt transactions on Wednesday, leaving only a “residual” amount at the London operation.
“The vast majority of repo trades are now being cleared by LCH in Paris,” Elkins told Reuters.
The full article is available at https://www.reuters.com/article/us-britain-eu-clearing/lch-says-bulk-of-euro-repo-debt-now-cleared-in-paris-unit-idUSKCN1QA2EY