This trading shift is dealing a blow to the City of London, highlighting the importance for the UK of reaching a post-Brexit agreement on financial regulation with the EU.
The International Financial Review (IFR) reports that volumes of euro interest-rate swaps transacted on US-based platforms, known as swap execution facilities (SEFs), jumped from 21% in December to 39% in the first two weeks of January, according to data provider IHS Markit.
Sterling swap volumes registered a similar rise. That came amid an equivalent drop in trading volumes on UK and EU-based derivatives trading venues.
