Europe swap dealers eye London return post-Brexit

Proposed Mifid exemption paves way for BNP Paribas, SocGen and Deutsche to trade swaps on UK venues

European lawmakers may be familiar with Newton’s third law of motion, which states that every action has an equal and opposite reaction. What they perhaps didn’t anticipate was the reaction to their decision to lift the drawbridge on UK derivatives venues post-Brexit.

On one hand, the European Union’s derivatives trading obligation (DTO) had the desired effect of forcing trades initiated by European clients away from UK venues and on to EU ones. On the other, it shut off their dealers from