Follow Us

Follow us on Twitter  Follow us on LinkedIn

08 June 2018

Financial Times: Germany’s Olaf Scholz suggests euro clearing be moved to Frankfurt

Default: Change to:

Olaf Scholz, Germany’s finance minister, has called for London’s euro clearing business to be relocated after Brexit. He suggested Frankfurt.

“To minimise risk for financial stability, it is indispensable that [the central clearing of euro-derivatives clearing] is subject to strong regulation and supervision in full conformity with EU standards,” Mr Scholz said on Friday afternoon in a speech at a Goldman Sachs conference in Frankfurt.

The Social Democrat and former mayor of Hamburg provides vital political backing for the plans of Theo Weimer, chief executive of Deutsche Börse, who wants to win at least a quarter of the market for clearing euro interest rate swaps from London by 2019. [...]

[...] At a conference in London this week, Danuta Hübner, a member of the European Parliament's economic committee, said a bespoke UK-EU trade agreement would not give the EU enough oversight of UK clearing. “We believe a free trade deal agreement cannot address all the issues for financial services,” she said.

Mr Scholz argued on Friday that it must be possible “to require the relocation of entities and services into the EU, if other measures do not sufficiently address risks”. The German finance minister also suggested that “Frankfurt, the hometown of the largest stock exchange across continental Europe, would seem to be a natural choice”. [...]

Full article on Financial Times (subscription required)


© Financial World

< Next Previous >
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information

Add new comment