Britain fully left the EU last December and the London Stock Exchange, whose LCH SwapClear arm clears the bulk of swaps denominated in euros, has temporary permission to continue serving customers from the EU until June 30 next year.
In a letter on Thursday to EU financial services chief Mairead McGuinness, the industry associations call on her to provide certainty to the market by either extending the current temporary permission or granting open-ended permission to allow a "natural" shift in business from London to Frankfurt already underway, to continue.
"We would also request the Commission to inform EU market participants of its intention as soon as possible and before March 2022 to address the ongoing uncertainty confronting the Joint Associations' EU clearing members and their clients, which already negatively impacts their clearing business," the letter said.
"However, we would also note that based on publicly available data we are starting to see a natural, gradual shift of activity to EU CCPs ," the letter said.
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Financial industry can SFTU. Euro belongs to EU not to Brexit-land.