LSE’s Rolet says moving clearing from London can’t be achieved

Xavier Rolet has told Bloomberg the process of moving clearing to the continent “probably cannot be achieved” as it is too complex.

The London Stock Exchange Group’s (LSE) chief executive officer has said moving clearing from London after Brexit, “probably cannot be achieved”.

Xavier Rolet made the comments in an interview with Bloomberg, and explained the physical and economic consequences are “rather complex.”

“The notion of separating the clearing of euro-denominated interest rate swaps from US dollar denominated interest rate swaps, just doesn’t make any economic sense,” he told Bloomberg.

Rolet said moving clearing from a regulatory and legal standpoint probably won’t be achieved.

Global investment firms have assumed France or Germany will take over the bulk of clearing following Brexit, amid European politicians urging clearing activity should leave London as part of the UK’s exit from the EU.

Rolet also said a minimum of 100,000 jobs in clearing are at risk across the UK, following Brexit.

He added those at risk are, “in risk management, compliance, middle office, back office support functions - by the way not just in London - up and down the country.”