Deutsche Boerse's new boss steps up Germany's bid for euro clearing

London

Brexit will provide a "historic" opportunity for Deutsche Boerse to steal a chunk of London's euro clearing business, the exchange's new boss said last night.

Theodor Weimer, who became chief executive of Deutsche Boerse at the beginning of the year, said in his first public appearance that he would be focusing on the growth and future of the German exchange by expanding its business.

Read more: Deutsche Boerse just took a step towards luring euro clearing from London after Brexit

He hoped that part of this would be driven by Frankfurt grabbing a larger portion of the euro clearing market, as Eurozone countries such as France and Germany have been pushing for the lucrative business to leave London when the UK splits from the EU.

“Post-Brexit offers a historic moment in time for us here in Frankfurt,” Weimer said, according to Reuters, at an invitation-only gathering at Deutsche Boerse's headquarters. “Let’s ensure together that euro clearing lands in the strongest economy of Europe.”

Weimer took the reins at Deutsche Boerse after a failed merger with the London Stock Exchange, an insider trading scandal and a profit warning left the company in need of a spruce up.

Read more: Deutsche Boerse chief executive steps down over LSE insider trading investigation as firm issues profit warning

But his display of strength will have rattled figures in the UK, who have warned that moving euro clearing from its base in the City could seriously damage both British and global economic stability.

The European Commission said last year that it would give EU regulators the power to force clearing out of London. In response Sir Jon Cunliffe, the deputy governor of the Bank of England who supervises financial stability, said: “Such a policy, if applied by all jurisdictions, is in the end likely to be a road to the splintering of this global infrastructure – and to further fragmentation of the global capital market – rather than the route to the sound and efficient management of risk.”

Clearing is the reconciling of payment between parties to a trade, where a clearing house acts as both buyer and seller to ensure that a transaction can run quickly and smoothly.

Read more: Moving euro clearing away from London threatens global financial services, warns City grandee

Full story: Deutsche Boerse's new boss steps up Germany's bid for euro clearing: City A.M.

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