Banks Contradict LSE CEO's Brexit Warnings Over London Clearing
- CEO claims a 92% gain in costs, industry group says it’s 20%
- Brexit has put LSE’s dominance of euro clearing into play
Xavier Rolet
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
The chief of London Stock Exchange Group Plc has been making increasingly doom-laden warnings should Europe succeed in stripping London of its lucrative clearing industry. His own customers disagree.
Investors would need to increase collateral by as much as 20 percent if clearing is forced to move to Europe after Brexit, according to a a derivatives-industry group survey of 11 banks. LSE Chief Executive Officer Xavier Rolet has floated a number that equates to a 92 percent jump.