Barclays PLC and HSBC Holdings PLC shifted part of their euro derivatives clearing to Frankfurt in light of Brexit and are among the biggest users of an incentive scheme run by Deutsche Börse AG, the Financial Times reported.
The two British banks are among the top 10 users of the German exchange's scheme, which was initiated in January and promises to share some of the profits of Eurex, a division of Deutsche Börse. Derivatives clearing manages the risk of default associated with trading between two parties.
Recently, German Finance Minister Olaf Scholz supported Deutsche Börse CEO Theodor Weimer's call to turn Germany's financial capital into the region's new euro clearing center. Weimer is reportedly eyeing at least a quarter of London's market for clearing euro interest rate swaps by 2019, according to the FT.
LCH, a unit of London Stock Exchange Group PLC, currently dominates the euro clearing market, the newspaper noted.
