EU clearing announcement leaves industry guessing
ifre.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ifre.com Daily Mail and Mail on Sunday newspapers.
US grabs more euro swap market share
ifre.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ifre.com Daily Mail and Mail on Sunday newspapers.
The European Union will struggle to force a large-scale migration of euro swaps clearing onto its shores without causing serious harm to its own banks as well as EU regulators’ ability to police these markets, industry experts have warned.
The EU has captured a large chunk of euro interest-rate swaps trading activity this year amid a post-Brexit regulatory impasse with the UK. But there has been no mass movement of euro interest-rate swap clearing out of London, with the UK’s LCH still accounting for roughly 96% of new clearing volumes in January and February, according to data from research and analytics firm ClarusFT.
4 Min Read
LONDON (Reuters) - Britain is set to allow banks to continue trading derivatives in the European Union after a review this month, given that pulling down the shutters would not bring back the trillions of euros in business lost since Brexit.
Britain’s trade deal with the EU since January does not cover financial services, leaving the City of London largely cut off from the bloc, which had banned EU customers from using UK platforms for trading swaps.
Hours before Britain’s full departure from the EU on Dec. 31, the Financial Conduct Authority announced that despite the EU refusing to budge on its curbs, it would allow banks in London, including subsidiaries of EU lenders, to trade euro swaps on platforms in the bloc to avoid a rupture with EU customers.