(Adds details on appointment, clearing)
Sept 25 (Reuters) - London Stock Exchange Group Plc has appointed financial services veteran Marshall Bailey as chairman of its clearing house LCH Group to oversee a business at the centre of debates about Brexit and its impact on Britain’s finance industry.
Bailey, who has spent almost thirty years in the financial services sector with experience of capital markets, regulatory and risk management, takes over from Lex Hoogduin, chairman of LCH since March 2015.
The clearing of euro transactions - a key part of LCH’s activities - has become a battleground in talks over Britain’s departure from the European Union, which is due to come into effect on March 29, 2019.
LCH clears about 90 percent of euro denominated contracts globally and some EU policymakers want that business moved from the LSE’s stronghold in London to the single currency area.
LCH is keen to quell concerns that German rival Deutsche Boerse might steal significant market share, which were heightened after Deutsche Bank said was shifting a large part of its new euro derivatives clearing from London to Deutsche Boerse in Frankfurt.
LCH has long dominated clearing of euro-denominated derivatives like interest rate swaps, which are used by companies to cover themselves against unexpected moves in borrowing costs.
Bailey, whose appointment is effective immediately, is currently chair of the Financial Services Compensation Scheme and has held a number of senior positions at State Street Global Markets and RBC Capital Markets. (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Louise Heavens and Mark Potter)