Deutsche Bank will move a large part of its euro clearing business from London to Frankfurt.
For a long time, London has been a major hub of euro clearing - trading of financial products priced in euro – with the city accounting for around 75% of the transactions. Deutsche Bank’s announcement could spark concerns over whether other banks would follow suit, thereby pointing towards a potential headwind to London (and advantage to European cities) resulting from Brexit.
According to a 2016 report commissioned by the London Stock Exchange, the United Kingdom could lose up to 83,000 jobs over seven years if clearing operations move out of London and into the eurozone.