The news that Deutsche Bank has transferred about half of its business clearing euro-denominated derivatives to Frankfurt from London should not come as a surprise. But it’s another reminder that money flows to where it feels most welcome and stays where it’s well treated – and post-Brexit London is set to be a more hostile environment for finance. Even by the standards of international banking, there’s a lot at stake in euro clearing. London stole a march on its European competitors at the birth of the common currency project; Brexit has given hope to Frankfurt and Paris and all of the other pretenders to the crown of being Europe’s most important financial city. London Stock Exchange dominates the clearing of euro-denominated derivatives through its LCH unit. But Deutsche Boerse CEO Theo Weimer told Bloomberg Televison in February that he was aiming to capture a 25% share of that business: "When an opponent shows weaknesses," he said at a conference in June, "a series of attacking...

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