Deutsche Bank AG and 16 other lenders recently tested moving interest-rate swap positions from London to Frankfurt, according to people familiar with the matter, a signal that financial firms are pushing ahead with preparations for a no-deal Brexit.
The banks made dummy trades on Dec. 3 in the first known dry run of a service that could move trillions of dollars of derivatives from LCH Ltd. in London to Eurex Clearing in Frankfurt, the people said, asking not to be identified because the trial wasn’t made public. Capitalab, a subsidiary of interdealer broker BGC Partners Inc., oversaw the dry run.
