Societe Generale headquarters in Puteaux near Paris. The bank is to start a new operation in the city ahead of Brexit. Reuters
Societe Generale headquarters in Puteaux near Paris. The bank is to start a new operation in the city ahead of Brexit. Reuters

French lender SocGen to open Paris hub ahead of Brexit



Societe Generale is opening a Paris hub this month to clear derivatives in the European Union in the latest sign of euro business moving from Britain to the bloc ahead of Brexit.

The French bank said the new unit would join several clearing houses, including the London Stock Exchange's LCH in Paris and Deutsche Boerse's Eurex Clearing in Frankfurt.

Customers were asking for their trades at the bank to be cleared in the EU, a SocGen spokeswoman said. LCH will be used for clearing credit default swaps, and Eurex will clear interest rate swaps (IRS), she said.

The French bank currently uses clearing houses in London, and also has clearing services in New York and Hong Kong, Reuters said.

The bank did not specify how many people it would be hiring to staff this new offer, nor whether it would be relocating employees from London to Paris.

Clearing in euro-denominated transactions has become a political battleground since Britain voted to leave the EU.

_________________

Read more:

EU court rules the United Kingdom can revoke Brexit

Theresa May warns of ‘uncharted waters’ if Brexit deal isn’t passed

_________________

It unclear what sort of trading relationship Britain will have with the EU after March, though Brussels has said it would allow EU market participants to continue using clearers in London if Britain crashed out of the bloc without an agreed exit deal.

"Societe Generale works with clients daily on listed derivatives and OTC [over-the-counter] clearing by adapting its offering to their changing needs within the current uncertain regulatory environment," said Christophe Lattuada, global head of prime services.

LCH's London arm clears over 90 per cent of euro-denominated IRS, and policymakers in the bloc want chunks of this moved to the continent after Brexit.

French central bank governor Francois Villeroy de Galhau said last month the clearing of euro denominated repurchase agreements was already moving from London to Paris.

"More generally, we would like to see the development in Paris of an enhanced and extended clearing services offering in the area of interest rate derivatives," Mr Villeroy said.

LCH in Paris has no licence to clear interest rate derivatives, meaning SocGen will have to use Eurex in Frankfurt for these contracts.

SocGen has said it would relocate or hire as many as 300 staff in continental Europe, mainly in Paris, because of the Brexit.

The news comes as Britain's economy lost speed in the three months to October, reflecting lower car sales and factory stoppages due to weaker demand that business groups blamed on uncertainty about Brexit. Gross domestic product growth slowed to 0.4 per cent, from a strong 0.6 per cent in the third quarter of 2018. Monday's data confirmed that the economy's strength over the summer represented something of a blip, caused by a boost to consumer spending from an unusually warm summer.

"The latest GDP data is further evidence that the drag effect of persistent Brexit uncertainty and the significant cost pressures faced by consumers and businesses is taking its toll on the UK economy," said Suren Thiru, head of economics at the British Chambers of Commerce.

Recent private-sector business surveys have suggested the economy is slowing sharply in the face of uncertainty about the terms on which Britain will leave the European Union. The surveys have shown that fourth-quarter economic growth could be as weak as 0.1 per cent. If May loses Tuesday's vote, the options for Brexit range from Britain facing major customs barriers when it leaves the EU in March to fresh national elections or a second referendum on leaving the EU.

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

Race 3

Produced: Salman Khan Films and Tips Films
Director: Remo D’Souza
Cast: Salman Khan, Anil Kapoor, Jacqueline Fernandez, Bobby Deol, Daisy Shah, Saqib Salem
Rating: 2.5 stars

Maestro
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EBradley%20Cooper%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EBradley%20Cooper%2C%20Carey%20Mulligan%2C%20Maya%20Hawke%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

How to avoid crypto fraud
  • Use unique usernames and passwords while enabling multi-factor authentication.
  • Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
  • Avoid suspicious social media ads promoting fraudulent schemes.
  • Only invest in crypto projects that you fully understand.
  • Critically assess whether a project’s promises or returns seem too good to be true.
  • Only use reputable platforms that have a track record of strong regulatory compliance.
  • Store funds in hardware wallets as opposed to online exchanges.
Cryopreservation: A timeline
  1. Keyhole surgery under general anaesthetic
  2. Ovarian tissue surgically removed
  3. Tissue processed in a high-tech facility
  4. Tissue re-implanted at a time of the patient’s choosing
  5. Full hormone production regained within 4-6 months
The%20National%20selections
%3Cp%3E6pm%3A%20Barakka%3Cbr%3E6.35pm%3A%20Dhahabi%3Cbr%3E7.10pm%3A%20Mouheeb%3Cbr%3E7.45pm%3A%20With%20The%20Moonlight%3Cbr%3E8.20pm%3A%20Remorse%3Cbr%3E8.55pm%3A%20Ottoman%20Fleet%3Cbr%3E9.30pm%3A%20Tranquil%20Night%3C%2Fp%3E%0A
Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5