New York could profit from Brexit tussle over euro derivatives
A hasty shift in euro-denominated derivatives clearing from London to Frankfurt to meet European Union post-Brexit demands may drive business to New York and shackle the 27-member bloc’s capital market, banks warn.
The future of where euro derivatives are cleared for customers in the bloc became a focal point in the Brexit debate, with EU politicians keen to wrest control of the 100 trillion euro ($122 trillion) market away from the City of London after Britain quit the EU.
Whilst employing a relatively small number of people, euro clearing is a central cog in European financial markets so EU policymakers argue they should have full oversight of it.
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LONDON (Reuters) - A hasty shift in euro-denominated derivatives clearing from London to Frankfurt to meet European Union post-Brexit demands may drive business to New York and shackle the 27-member bloc s capital market, banks warn.
The future of where euro derivatives are cleared for customers in the bloc became a focal point in the Brexit debate, with EU politicians keen to wrest control of the 100 trillion euro ($122 trillion) market away from the City of London after Britain quit the EU.
Whilst employing a relatively small number of people, euro clearing is a central cog in European financial markets so EU policymakers argue they should have full oversight of it.
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The Financial Stability Board (FSB) Regional Consultative Group (RCG) for Europe held a virtual meeting yesterday to discuss global and regional macroeconomic and financial market developments, and their potential impact on European economies.
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A street sign is seen in front of the New York Stock Exchange on Wall Street in New York, February 10, 2009. REUTERS/Eric Thayer
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A hasty shift in euro-denominated derivatives clearing from London to Frankfurt to meet European Union post-Brexit demands may drive business to New York and shackle the 27-member bloc s capital market, banks warn.
The future of where euro derivatives are cleared for customers in the bloc became a focal point in the Brexit debate, with EU politicians keen to wrest control of the 100 trillion euro ($122 trillion) market away from the City of London after Britain quit the EU.
Analysis-New York could profit from Brexit tussle over euro derivatives reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.