The Daily Telegraph reports that trading staff will stay put in London, but interest rate swap trades will be increasingly booked in Hong Kong.
It is part of a wider move by banks to cut back their derivatives trading desks because of higher regulatory costs.
Banks have to set increasing amounts of capital against their trading books to reflect the risks involved in the business.
While these capital buffers are designed to make banks more resilient, they also make it more expensive to run a business that traditionally ran on relatively low margins.
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