LONDON - London will remain a big part of Europe’s financial market plumbing well beyond Brexit as the coronavirus pandemic has thwarted Frankfurt’s ambitions to grab billions of euros worth of derivatives clearing business from Britain.
Other European centres, such as Frankfurt, keen to claw back a chunk of this business, saw Brexit as a chance to reduce London’s grip on clearing euro-denominated trades. In swaps alone, Eurex has 7.3 trillion euros, or 14% of the market, compared with 45.8 trillion euros at LCH. Eurex has a goal of reaching an overall euro clearing target of 25 trillion euros by the end of 2020.
The LSE said there had been no discernible shift in clearing from London. Lawyers said banks will not move positions from London to Frankfurt voluntarily because of costs and complexity at a time when they are firefighting the pandemic. There is a political cost for Britain to maintain EU access for its financial services industry - the Bank of England will have to allow EU securities watchdog ESMA to jointly supervise LCH.
That would beg the question : do other countries really have to stay within the EU ?
e aí, deltan dalagnol, vai pegar a globo ou vai faltar coragem? vai deixar prescrever como fez com o psdb? quem vcs ainda enganam?
LOL, the EU/ECB will forbid large euro clearing outside the EU. ECB tried to block London clearing before but ECJ intervened. Brexit rendered that intervention useless.
What they are dreaming about will fall short! London is a tax haven! And must be tackled about! Q.E.D.
Told ya so... London’s the entrepôt... Britain still needs the EU, & the EU still needs Britain, it’s an adjustment.