EU to use special measures to keep London as top finance hub to halt £676trillion meltdown

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Commission officials have proposed access to UK-based clearing houses should remain in place until the middle of 2022. Eurocrats are current consulting EU capitals on the plans that would maintain the City of London as the Continent’s leading financial services market. Without special dispensation, London-based clearing houses, which act as the middle man in financial trades, would be blocked from handling euro-denominated derivatives after the post-Brexit transition period expires at the end the of year. {%=o.title%}

Clearing houses, such as the London Stock Exchange’s LCH and ICE Clear Europe, are some of the most critical institution’s in the global financial system.The Bank of England and European Central Bank have both warned a cliff-edge cut-off would pose a significant threat to stability across the continent.London is the world’s most dominant market for clearing derivatives, and oversees the bulk of the €735 trillion European market.Despite EU governments wanting to capture business from the UK, eurozone firms have warned they will not be able to ramp up capacity enough to replace the British capital in the coming years. London set to keep status as top financial services hub for EU firms (Image: GETTY) Prime Minister Boris Johnson ( …

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