The European Union is considering a law that could end London's global dominance in clearing euro-denominated financial contracts following Brexit, threatening both job losses and tax revenues.

LCH said during 2017, its interest rate derivatives clearing service, SwapClear, which dominates clearing of euro-denominated swaps or derivatives, processed over $873 trillion (£643.1 trillion) in notional.

EU policymakers have said that clearing of euro-denominated swaps or derivatives may have to move to the euro zone after Brexit.

LCH said clearing activity in 2017 surpassed that of previous year boosted by roll-out of new products, additional flows from existing customers and new customers.

Among LCH's other services, inflation swaps of over $3.1 trillion were cleared in 2017, almost three times the volume processed in the previous year.

Members and their clients increased their flows through LCH by 31 percent compared with 2016.

The FX derivatives clearing service, ForexClear, processed over $11 trillion in notional, up from approximately $3.2 trillion in 2016.

Financial services represent Britain's biggest tax-earning sector and the LSE has warned that thousands of jobs could leave the United Kingdom if euro clearing was forced out.

This year, LCH looks to further expand its SwapClear product offering, with plans to introduce non-deliverable interest rate swaps in Chinese yuan, Korean won and Indian rupee.

(Reporting by Rama Venkat Raman in Bengaluru and Huw Jones in London; Editing by Lisa Shumaker)