Dislocation policy: LCH exodus risks CCP basis blow-out

Questions about post-Brexit status of UK CCP could spark mass migration – and severe volatility

London’s banks are on the move. Unwilling to wait for clarity on the terms of the UK’s exit from the European Union, they are choosing new homes for their regional businesses – decisions that have been taken in the middle of a media scrum.

But the city is also quietly preparing for a second exodus – of cleared euro interest rate swaps from LCH, a venue EU firms may be barred from using after the UK goes its own way. This relocation would be no less historic: market participants estimate around

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