- John Flint to succeed Stuart Gulliver as HSBC’s Group CEO
- Sigma publishes first-ever financial crime-related rating for Maltese bank
- Banks must tailor their marketing to individual customers, says Optimove
- Fewer than one in ten seek professional advice about financial protection, says HSBC
- OakNorth secures new investment to boost UK businesses in 2018
- US Faster Payments Governance Framework Formation Team announced
- ACI Worldwide and STET team to drive European immediate payments adoption expired
- Barclays’ Chief Compliance Officer to leave expired
- Lords Sub-Committee to look at how financial regulation will evolve after Brexit expired
- Bank of America delivers positive operating leverage in Q3 expired
- JPMorgan Chase delivered solid Q3 results, says CEO expired
- Wells Fargo’s Q3 results hit by the impact of mortgage-related litigation 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.”