LONDON, Sept 9 (Reuters) – New York has increased its market share in trading euro interest rate swaps at London’s expense, data group OSTTRA said on Thursday, in the latest sign of how global financial markets are being permanently fragmented by Brexit.
Trading in euro rate swaps began leaving London for the European Union and United States after Britain fully left the bloc on Dec. 31.
EU banks could no longer trade euro swaps in London and must use a platform in the bloc or those approved by EU regulators, such as in the United States and Singapore.
OSTTRA, a new joint venture between CME Group and IHS Markit, said that in the second quarter of 2021 U.S.-based platforms accounted for 23% of euro rate swaps by volume, up from 18% in the first quarter.
For UK and EU counterparties that want to trade…