The Financial Times reports that the bank - one of the five largest clearers of interest derivatives - has shifted around half its operation to the German city over the last six months. At the start of the year, the activity was almost entirely carried out in London.
The City has feared businesses may shift clearing away to European hubs since the EU referendum result came in, with repeated warnings about how fragmentation may lead to increased risks. Until now London’s LCH has been the king of clearing euro-denominated interest rate swaps, processing up to €1tn of notional deals per day.
Last month Germany's finance minister Olaf Scholz said it was "indepensable" that clearing was carried out "in full conformity with EU standards,” suggesting Frankfurt would be the natural place.
LCH parent company London Stock Exchange Group has warned that as many as 100,000 jobs could leave the City if London loses its status as the euro clearing hub.
However, Deutsche Bank's global co-head of institutional and treasury coverage told the FT the move had not led to a wholesale relocation of jobs.
“It’s the same London-based person who clears a transaction. We’re just using a different clearing house,” he said.
Neither Deutsche Bank nor LCH replied to requests for comment this morning.