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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.
If the U.K. leaves the European Union without an exit agreement and the banks have to use the service, the lenders’ existing positions at London’s LCH would be closed, with identical new positions opened at Eurex Clearing in Germany’s financial capital.
BGC and LCH declined to comment, as did Deutsche Bank and Commerzbank AG, which also took part. A Danske Bank A/S spokeswoman confirmed the lender participated in the test as part of its Brexit planning. [...]