Brexit Prompts JPMorgan, Deutsche Bank to Use Paris for Trades
- Banks to send clients’ CDS trades to French clearinghouse
- No-deal Brexit would stop European clients accessing ICE
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London Stock Exchange Group Plc’s clearinghouse in the U.K. capital has much to lose from a no-deal Brexit, but its Paris division has much to gain.
LSE’s French clearinghouse, LCH SA, is winning business from London as finance firms switch to clearing trades within the European Union to avoid being disrupted by Britain’s departure from the bloc next year. JPMorgan Chase & Co. and Societe Generale SA were approved to clear client trades through LCH this summer, and fund managers such as Frankfurt-based Union Investment and Helaba Invest have decided to send their trades to Paris.