BRUSSELS (Reuters) – European Union governments backed on Monday a proposal that could force systemic foreign clearing houses with operations in the EU to relocate to the bloc if they want to continue servicing their EU clients, a statement said.
The move, which confirms a proposal made by the European Commission last year, could have repercussions for U.S. businesses and British clearing firms after Britain leaves the EU in March.
The text, if adopted in talks with EU lawmakers which will follow in the coming weeks, could concern LCH, a unit of the London Stock Exchange (LSE.L), which dominates clearing of euro-denominated interest rate swaps and after Brexit will be outside the EU. The move could strip London of a chunk of that business.
The full article is available at https://www.reuters.com/article/us-eu-markets-regulations/eu-takes-new-step-on-derivative-clearing-despite-uk-u-s-concerns-idUSKBN1O21RC