The chief executive of the London Stock Exchange said he expects the EU will continue allowing its banks to clear trades through London, despite the fallout from Brexit, because of the “critical” importance the City's clearing houses have for firms in the bloc.

EU banks can currently use LCH and other UK clearing houses under a temporary agreement which ends next July. David Schwimmer said his exchange is talking to the EU and clients about the issue, which remains one of the biggest headaches for the UK financial services industry post-Brexit.