Post-Brexit derivatives deadlock hurts EU-based banks

摘要

Europe's largest investment banks are losing ground in derivatives trading to US and UK banks this year in a surprise Brexit twist resulting from a financial regulatory standoff between Brussels and London. BNPPARIBAS, DEUTSCHE BANK and SOCIETE GENERALE are among the banks to register notable market share declines in trading of interest-rate swaps and credit-default swap indices this quarter, according to sources familiar with the matter, as a result of no longer having access to UK-based derivatives trading venues from the start of 2021. That has cut them off from a large chunk of UK institutional investors - as well as other banks - that still trade billions of dollars worth of derivatives on these platforms every day.