- All participating US banks pass supervisory stress tests
- Commission approves aid for market exit of BPVI and Veneto Banca
- RBS to move hundreds of back-office jobs to India
- Instinet agrees to purchase BlockCross ATS from State Street
- BBA publishes May 2017 figures for high-street banks
- RBS launches scheme to support new entrants to the Scottish farming sector
- Barclays Ireland appoints Kevin Wall as new CEO expired
- Resolution can actually work, says BBA expired
- CML estimates gross lending up 12% in May, and revises buy-to-let forecast expired
- MasterCard Foundation appoints three new members to its board expired
- Firms will be caught off guard by new AML directive, warns SAS expired
- EBA publishes discussion paper on the treatment of structural FX expired
16th June 2017
City of London responds to potential shift of euro clearing
It has been revealed that London could lose its euro clearing role when the UK leaves the European Union in 2019. A draft law by EU aims to give it the power to decide whether to move the lucrative euro clearing business post Brexit. European Commission vice-president Valdis Dombrovskis said Brexit needed "certain adjustments to our rules".
In response to the European Commission’s paper on euro-clearing, Catherine McGuinness, Policy Chairman at the City of London Corporation, said: “London is the unparalleled leader when it comes to clearing. The UK accounts for 40 per cent of the global trading. In contrast, the remaining EU27 member states account for less than 10 per cent of the combined market share. The EU is simply not equipped to handle the volume of clearing that the UK does each day.
“Each day the UK clears on average $2.1tn – more than the EUR885bn cleared, yet the US is not suggesting this function is repatriated. In taking steps to shift power away from UK clearing houses, the EU could damage itself unnecessarily. Fragmentation of foreign exchange and interest rate trading across Europe and the rest of the world could lead to firms’ costs increasing by as much as 20 per cent.
“We are also concerned that a location policy would impact across the international ecosystem in terms of market fragmentation and could increase systemic risk. The UK is the only place that can guarantee financial stability with the lowest possible cost implications. We do however welcome a structured and constructive discussion on these issues.”