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The Futures Industry Association (FIA) warned that it “strongly believe[s] that a forced relocation of euro-denominated derivatives clearing would be severely detrimental to the economic interests of the EU”.
In a letter to commission vice president Valdis Dombrovskis, FIA boss Walt Lukken strongly warned against a relocation policy but showed support for enhanced supervision.
“FIA has grave concerns that the forced relocation of clearing of euro-denominated derivatives to the European Union would fragment… markets, raise costs for end users, and weaken the stability of the financial system, and we therefore oppose such a policy,” he said.
“We fully agree that the EU has monetary policy and regulatory interests in these markets, but we strongly believe the EU can address these interests through enhanced oversight.
“The location of clearing activity should be driven by legitimate market forces operating within a regulatory framework suited for a global market.”
He added: “The euro is one of the world’s great reserve currencies. If it is to maintain this status, it should be traded freely and openly. Policymakers should proceed with caution on possibly restricting the use of the euro currency.”