Concerns that Brexit could weaken the City’s grip on clearing euro-denominated derivatives are weighing on the London Stock Exchange Group’s shares, according to JPMorgan analysts.

The LSE’s majority-owned clearing house, LCH, is the dominant clearer of swaps, which are derivatives used to hedge and speculate on the direction of interest rates. However, the vote for Brexit re-ignited calls for the clearing of euro derivatives to take place in the EU once the UK leaves the bloc.