New York emerges winner as Brexit pushes swaps trading from London
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
THURSDAY, MAY 19, 2022
THURSDAY, MAY 19, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
New York emerges winner as Brexit pushes swaps trading from London

Global Economy

Reuters
21 January, 2021, 08:55 pm
Last modified: 21 January, 2021, 08:54 pm

Related News

  • New York racist-shooting suspect was questioned after threat last year
  • Gunman kills 10 in racially motivated shooting at New York supermarket
  • New York subway shooting suspect indicted on terrorism charge
  • Battered US stocks may not be bargains as investors brace for inflation data
  • Concert to celebrate 50 years of Bangladesh’s independence in New York today

New York emerges winner as Brexit pushes swaps trading from London

EU market users must now trade swaps on platforms in the bloc, or on a swap execution facility or SEF in the United States which has EU market access

Reuters
21 January, 2021, 08:55 pm
Last modified: 21 January, 2021, 08:54 pm
Wall Street. Photo :Reuters
Wall Street. Photo :Reuters

Britain's exit from the European Union has pushed swathes of derivatives trading from London to the bloc and the United States in a further blow to the capital's financial sector.

Britain left the EU's single market on Dec. 31, forcing EU banks and asset managers to stop using London for trading heavily used derivatives like interest rate swaps (IRS).

EU market users must now trade swaps on platforms in the bloc, or on a swap execution facility or SEF in the United States which has EU market access.

IHS Markit, a financial information company, said the share of euro denominated rate swaps trading on SEFs doubled from 11% in December to almost 23% in the first two weeks of January.

"Of course, the real cost of fractured global liquidity is more expensive hedging and ultimately higher costs to end users," said Kirston Winters, managing director at IHS Markit.

Britain has called on the EU to grant access to trading platforms in London, the world's biggest centre for swaps, but Brussels has declined so far.

The shift mirrors a move in euro denominated share trading worth 6.5 billion euros a day that left London on Jan. 4 for trading platforms in the EU. Trading in euro-denominated government bonds left London for the continent after Britain voted in 2016 to exit the bloc.

Eric Litvack, group director of public affairs at French bank SocGen said firms were adapting to "new realities" as some swaps trading left London for EU and US platforms.

"Generally, the US has been the big winner, though the EU has won some business in euro denoninated swaps," a derivatives industry insider added.

The Bank of England said in December that around $200 billion of daily interest rate swap trading in Britain would be affected by curbs on trading swaps between the UK and EU.

At the last minute, Britain eased some of its restrictions to avoid a complete rupture in trading.

Top News / World+Biz

Wall St. / New york / London

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Govt’s bank borrowing 43% of target in 10 months of FY22
    Govt’s bank borrowing 43% of target in 10 months of FY22
  • Finance Minister AHM Mustafa Kamal, Photo: TBS
    Annual foreign debts can be paid with two months’ remittance: Finance minister
  • Falling trade barriers and hyper-efficient logistics produced an age of abundance for many. But the last four years have brought an escalating series of disruptions.Source: Bloomberg
    Age of scarcity begins with $1.6 trillion hit to world economy

MOST VIEWED

  • Chinese Foreign Minister Wang Yi speaks during a joint press conference with Iranian Foreign Minister Mohammad Javad Zarif in Beijing, China December 5, 2016. REUTERS/Greg Baker/Pool
    China says it wants to expand BRICS bloc of emerging economies
  • A trader works on the floor of the New York Stock Exchange shortly after the opening bell in New York, US, January 24, 2020. Photo: Reuters
    World shares sink after inflation driven retreat on Wall St
  • Falling trade barriers and hyper-efficient logistics produced an age of abundance for many. But the last four years have brought an escalating series of disruptions.Source: Bloomberg
    Age of scarcity begins with $1.6 trillion hit to world economy
  • A man counts Pakistani banknotes along a roadside in Islamabad, Pakistan, November 16, 2017. REUTERS/Faisal Mahmood
    Pakistani rupee storms past 200-mark against US dollar in interbank
  • Russian Rouble coins are seen in front of displayed U.S. Dollar banknote in this illustration taken, February 24, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
    Washington holds key to Russia's sovereign default
  • FILE PHOTO: Russian Energy Minister Alexander Novak attends the Energy Week International Forum in Moscow, Russia October 3, 2019. REUTERS/Evgenia Novozhenina
    Russia to send oil rejected by Europe to Asia, other regions, says Novak

Related News

  • New York racist-shooting suspect was questioned after threat last year
  • Gunman kills 10 in racially motivated shooting at New York supermarket
  • New York subway shooting suspect indicted on terrorism charge
  • Battered US stocks may not be bargains as investors brace for inflation data
  • Concert to celebrate 50 years of Bangladesh’s independence in New York today

Features

Sketch: TBS

'Food inflation is an unavoidable consequence of currency devaluation'

11h | Interviews
The open-browser-tabs question also tells an interviewer how much of an internet native the job applicant might be. Photo: Noor-a-Alam

The best question to ask a job applicant

11h | Pursuit
Illustration: TBS

Ugly business: Politics in workplace

10h | Pursuit
Illustration: TBS

‘Do you have insurance?’: Life of a life insurance agent

13h | Panorama

More Videos from TBS

Putin's strategies to face Nato

Putin's strategies to face Nato

26m | Videos
How many countries have nuclear weapons and how many are there?

How many countries have nuclear weapons and how many are there?

41m | Videos
Dengue fever is rising, so beware

Dengue fever is rising, so beware

51m | Videos
How a university teacher and PHD holder become farmer

How a university teacher and PHD holder become farmer

5h | Videos

Most Read

1
Tk100 for bike, Tk2,400 for bus to cross Padma Bridge
Bangladesh

Tk100 for bike, Tk2,400 for bus to cross Padma Bridge

2
Representative Photo: Pixabay.
Bangladesh

Microplastics found in 5 local sugar brands

3
Mushfiq Mobarak. Photo: Noor-A-Alam
Panorama

Meet the Yale professor who anchors his research in Bangladesh and scales up interventions globally

4
A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron
Banking

Dollar hits Tk100 mark in open market

5
The story of Bangladesh becoming a major bicycle exporter
Industry

The story of Bangladesh becoming a major bicycle exporter

6
PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire
Crime

PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab