London's LCH dominates interest-rate swap market

London

ONE of London's crown financial jewels - a business sought after by the rest of Europe - is shining brighter than ever before.

The UK capital's LCH clearinghouse is the world's biggest for interest-rate swaps, a market where trading has marched steadily higher in every survey since 1995.

Last year, LCH's swap clearing business enjoyed a 25 per cent jump in volume to US$666 trillion. And the regulatory incentives giving those operations a tailwind are just getting stronger.

But LCH has a major distraction: Continental Europe thinks it's located on the wrong side of the English Channel.

That's raised questions about whether its customers would begin seeking other options. With less than a month until Britain's wit…