JP Morgan, HSBC and Citigroup are among 20 major banks backing a bid by Deutsche Borse to bring clearing business to the Continent.
It subsidiary has launched a scheme that would allow banks to have a bigger say in governance and strategy, while the most active traders would be able to share in interest rate swap revenues, City AM reports.
HSBC global head of rates Christophe Rivoire described it as an important step for European derivatives. Deutsche Bank and Spain
Clearing has become a political issue since Brexit with eurozone members keen to bring euro business to the Continent, while the UK has accused the EU of threatening to fragment the market.
Euro clearing is currently dominated by LCH, which is owned by the London Stock Exchange.
City of London Corporation policy chair Catherine McGuinness says: “Clearing is an integral part of the financial services makeup here in London – it’s what we do best.”
“It’s incredibly important that politics doesn’t overshadow the business argument for keeping clearing in the UK.”