Clearnet, the French arm of London-based clearing house LCH.Clearnet, has emerged as a leading contender to clear over-the-counter credit default swaps in Europe after the parent group’s failure to make progress with a similar venture in the UK.

French regulators and the Banque de France have been pushing for the creation of a Paris-based CDS clearer to serve the eurozone, as part of ambitions to build Paris as a European financial centre.