Since the Brexit decision, an intense political debate has arisen as to whether euro clearing can remain in London, where up to 100,000 British jobs are generated. There has not yet been a final decision on the subject. A European Parliamentary committee voted last week in favour of a draft law which instructs EU regulators to check on “systemic” foreign clearing houses that handle large amounts of euro-denominated assets like interest rate swaps. A Bundesbank board member expressed concerns this week over the proposed regulation, warning that the European rules may leave EU regulators short of the power they need to protect Europe’s financial sector post-Brexit.
 

The article in German: Bleibt das Euro-Derivategeschäft in London? Gutachten warnt vor enormen Risiken

 

Sourcing and translation by European Movement International