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Deutsche Boerse steps up efforts to take euro-clearing from London
From:Xinhua  |  2017-10-09 19:03

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BERLIN, Oct. 9 (Xinhua) -- Deutsche Boerse AG is stepping up its efforts to lure the lucrative business of euro derivative-clearing away from London after "Brexit."

The Frankfurt-based stock exchange operator told press in a statement that it had drafted plans to distribute profits generated by the business among its members. Deutsche Boerse hereby intends to reform its Eurex Clearing platform to persuade large financial services companies in the global swaps market to increasingly use its clearing house over the facilities offered by rivals such as LCH in Britain.

According to the press release, global investment banks including Bank of America Merril Lynch, Citigroup, Commerzbank, Deutsche Bank, JP Morgan and Morgan Stanley have shown interest in participating in the new Deutsche Boerse scheme.

"This market-led initiative will benefit clients and the broader market place through greater choice and competition, improved price transparency, as well as reduced concentration risk," a written statement by Eurex Clearing CEO Eric Mueller read.

Britain's decision to leave the European Union has cast doubt over London's ability to maintain its dominant grip on euro clearing activities, a business whose profitability has been boosted by recent regulatory reforms in the finance industry.

National politicians in the Eurozone and the European Central Bank (ECB) have floated several proposals since "Brexit" to outlaw euro clearing outside of the currency union. Deutsche Boerse's Eurex Clearing has a banking license from the ECB and is currently the only platform licensed to clear interest rate swaps in the Eurozone.