Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
Home Finance Britain says EU will struggle to shift euro clearing from London
Finance

Britain says EU will struggle to shift euro clearing from London

by jcp April 26, 2022
April 26, 2022
gawdo

By Huw Jones

LONDON (Reuters) – Britain’s financial services minister said on Tuesday that the European Union would find it hard to replace London for clearing trillions of euros in derivatives, and that the limited shift in activity so far was not gathering pace.

After Britain left the bloc, Brussels said it wants to build up euro clearing capacity inside the EU to end heavy reliance on the London Stock Exchange’s LCH unit, which clears most euro interest rate swaps.

Brussels is allowing EU banks to use London for clearing until June 2025, and in the meantime will introduce incentives for banks to shift more activity to Frankfurt, and potential penalities for those who don’t.

“It’s quite challenging to build up that infrastructure, but that is a matter for them,” UK financial services minister John Glen told the House of Lords European Affairs Committee.

Small amounts of clearing have moved from London but not enough to concern Britain, Glen said.

“I don’t think it’s part of a trend,” he added.

Although Brexit largely cut off Britain’s financial sector from the bloc, Glen said the sector has grown and is resilient, with around 7,000 jobs leaving London for the EU, not the haemorrhage initially predicted.

With the exception of clearing, the EU has not granted access for other financial activities from Britain, unlike for the United States and Singapore.

“I am not waiting for that decision,” Glen said, adding his focus was on keeping London a competitive and well-regulated place for clearing.

Britain and the EU will develop their own regulatory regimes in parallel, particularly in new areas such as fintech, green finance and crypto, Glen added.

There was, however, concern among non-EU banks about EU proposals that could force them to set up a branch when providing wholesale market services to clients in the bloc, Glen said.

“We will be expecting the EU to clarify where they are going. They seem to be moving in a positive direction and I welcome that,” Glen said.

 

(Reporting by Huw Jones; editing by Barbara Lewis)

www.gawdo.com
Share on FacebookShare on TwitterShare on Linkedin
0 FacebookTwitterPinterestEmail
previous post
Indonesia’s palm oil export ban seen short-lived on limited storage
next post
Iveco supply issues to peak this quarter after weighing down Q1

You may also like

Banks delayed handling of losses worsen financial crises

June 28, 2022

Best bite: Kaspersky reveals phishing emails that employees...

June 28, 2022

Five Low-Cost Strategies to improve employee wellbeing

June 28, 2022
Editorial & Advertiser disclosureEditorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
gawdo.com
https://www.gawdo.com
  • About us
  • Advertising & Terms of Use
  • Contact Us
  • Privacy Policy

@2021 - All Right Reserved.


Back To Top
Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT