The European Union should allow clearing houses in Britain to continue serving customers in the bloc to avoid a significant risk of market disruption, nine financial industry bodies said on Thursday.
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.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of England urges banks to wait out EU pressure over euro clearingBanks should hold their nerve in the face of European Union pressure to shift euro derivatives clearing from London to the bloc, Bank of England Governor Andrew Bailey said on Tuesday.
Read more »
EU chief calls for more military independence amid new 'era of regional rivalries'There is a new international order, where competition is fierce and some nations 'stop at nothing to gain influence,' President Ursula von der Leyen said.
Read more »
Latest: EU commits 200 million more vaccine doses to AfricaBRUSSELS — The European Union is committing 200 million more vaccine doses to Africa. European Commission President Ursula von der Leyen says the donation comes on top of 250 million already committed and underscores the EU resolve to boost global vaccination.
Read more »
EU plans 'Chips Act' to promote semiconductor self-sufficiencyThe European Commission announced plans on Wednesday for a new chipmaking 'ecosystem', to keep the EU competitive and self-sufficient after a global semiconductor shortage showed the hazards of relying on Asian and U.S. suppliers.
Read more »
U.S., EU pursuing global deal to slash planet-warming methane, documents showTheir pact comes as Washington and Brussels seek to galvanize other major economies ahead of a world summit to address climate change in Scotland.
Read more »
Leader says Poland wants to be in EU, but remain sovereignPoland’s most powerful politician says the country’s future is in the European Union but that Poland also wishes to remain a sovereign country.
Read more »