Brussels has responded to financial industry calls for continued access to London’s capital markets by providing reassurance that EU groups will temporarily be able to use crucial derivatives clearing services in the UK even after a no-deal Brexit.
The commitment by Valdis Dombrovskis, European Commission vice-president, follows months of warnings by European bankers that EU companies otherwise face hefty rises in trading costs — or will be unable to hedge their market exposures.
Brussels’ offer shows the importance regulators attach to avoiding any disruption to the operation of clearing houses, which have become a vital pillar of the financial system in the wake of the 2008 crisis.
Th full article is available at https://www.ft.com/content/045fc67a-db9f-11e8-9f04-38d397e6661c