The London Daily News

29 March, 2010 10:27 (GMT +00:00)

Another blow to London financial services, Paris opens clearing house

City News Desk

Paris has moved into the clearing of credit default swaps, a direct challenge to London which has historically dominated the market.

The French government have pushed for Paris to take the top spot for financial services in Europe, with a report in the The FT reporting that the French finance minister Christine Lagarde said that Paris now had "new impetus to gain market share from London, especially in euro-dominated bonds given France's membership of the euro".

The new LCH.Clearnet in Paris will begin trading French corporate indices with French banks, with a leaked reported by the Banque of France revealing that the French government wants to "ensure that any eurozone OTC derivatives clearer by bases in Paris".
President Sarkozy celebrated earlier late last year the appointment of Michel Barnier as commissioner of financial services and the interna market and said:

“Do you know what it means for me to see for the first time in 50 years a French European Commissioner in charge of the internal market, including financial services, including the City [of London]?” he said of Mr Barnier’s appointment. “I want the world to see the victory of the European model, which has nothing to do with the excesses of financial capitalism.”

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