London Confronts Exodus of Euro Swaps Trading After Brexit

Trading venues in U.K. saw euro swaps market share slip to 10%
Deutsche Boerse said swaps portfolios are shifting to Germany

London Loses Out to Amsterdam With Stock, Swaps Moves

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By Silla Brush, Nicholas Comfort, and Viren Vaghela

February 11, 2021 at 10:59 AM UTC

Updated on

February 11, 2021 at 12:58 PM UTC

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London took a major hit to its dominance of euro swap trading after Brexit, with business fleeing the U.K. capital to both the European Union and Wall Street.

That’s according to a new analysis by IHS Markit, which found London trading venues’ share of the euro interest rate swap market slipped to 10% last month from nearly 40% in July. In the same period, EU platforms’ market share increased to a quarter from less than 10%. Wall Street venues’ share doubled to 20%, while trades done off-venue remained relatively steady.