French investment bank Societe Generale has stated it will establish a new clearing hub in Paris, providing a base in the European Union for client clearing ahead of Brexit.
The move will offer the option to clear client trades for listed derivatives and over-the-counter (OTC) products directly from the Paris platform by the end of the year. Societe Generale currently has clearing operations in London, New York and Hong Kong.
“Societe Generale works with clients daily on listed derivatives and OTC clearing by adapting its offering to their changing needs within the current uncertain regulatory environment,” Christophe Lattuada, global head of prime services, commented.
As the UK prepares to leave the European Union concerns about where euro-denominated clearing activity will shift to following Brexit continues to dominate the industry. Last month, the EU markets watchdog welcomed a notice from the European Commission which stated that in the case of ‘no-deal’ Brexit, a temporary and conditional equivalence agreement will be put in place to ensure there is no disruption to central clearing in Europe.
The French bank added that it has made efforts to expand and grow its prime services business, providing multi-asset prime brokerage including execution, clearing and market access, in Continental Europe over the past few years.
In Paris, Societe Generale hired the former CEO for Asia-Pacific at ABN Amro Clearing Bank, Stéphane Eglizeau, as its global head of sales for professional trading groups. At the same time, Ebru Ciaravino joined the prime services sales team in Frankfurt, overseeing the bank’s German and Austrian clients after more than 15 years with Eurex Group.
“This reinforcement of the prime services offering is also part of the strategic plan developed by the bank to build on its global markets top positioning in Europe,” Frank Drouet, global head of global markets at Societe Generale, added.