London Stock Exchange CEO Says 'At A Very Minimum' 100,000 Jobs Could Leave England Due To Brexit

Xavier Rolet, the CEO of the London Stock Exchange Group told Bloomberg in an interview that "at a very minimum" 100,000 jobs are at risk following the Brexit vote in June.

Rolet said that the jobs lost will be related to clearing as the London Stock Exchange is also the majority owner of LCH, the world's largest clearinghouse for derivatives that are linked to interest rates.

Perhaps the bigger problem is the fact that according to Rolet there are "very, very few" financial hubs around the world that could take over its business. Last year alone, the LSE's clearinghouse cleared over 320 trillion euros worth of euro-denominated securities.

Once Britain officially leaves the European Union, remaining European members are likely to demand the clearing business be shifted to its territory. This would see jobs in risk management, compliance, middle office, back-office support functions leave the country — but it is unclear where they would go.

France and Germany are currently vying to take over London's role in clearing $570 billion euro derivatives a day. However, Rolet thinks the "only logical alternative" to London is New York City.

"The physical possibility of moving, as well as the economic consequences, are rather complex," Rolet said. "The notion of separating, for example, the clearing of euro-denominated interest-rate swaps from U.S. dollar-denominated interest-rate swaps, just doesn't make any economic sense and probably cannot be achieved, even from a regulatory or legal standpoint."