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Miles Celic, Chief Executive Officer, TheCityUK, said:
Clearing is an activity where economies of scale make a big difference to the cost of doing business. This is one of the major reasons why clearing has become concentrated in major international centres like London. It has the scale, expertise and infrastructure to keep costs as low as possible.
A forced re-location of euro-clearing would lead to disruption, uncertainty and fragmentation of the market. A potentially less liquid, and less competitive EU market would result in higher costs for European savers and investors. This would ultimately be detrimental to people and businesses in Britain and in Europe. This is in no one’s interest and is entirely avoidable.