The head of the London Stock Exchange’s $1 quadrillion swaps clearing business expects that EU regulators will avoid imposing a “cliff edge” on the City’s derivatives markets, even after a 12-month Brexit grace period ends.

And, according to Michael Davie, the LSE’s majority-owned clearing house LCH has the “gravitational pull” to head off the threat posed by Brexit and its German rival operated by Deutsche Börse.