EU quizzes industry on relocating euro clearing from London

FILE PHOTO: British and European Union flags are seen ahead of a meeting of European Commission President Ursula von der Leyen and British Prime Minister Boris Johnson, in Brussels, Belgium December 9, 2020. Olivier Hoslet/Pool via REUTERS/File Photo

LONDON (Reuters) – The European Union is asking financial market participants about what legislative and regulatory steps would help them transfer clearing in euro derivatives from London to the bloc, an EU document showed on Monday.

The bloc’s executive European Commission is holding workshops with industry about shifting trillions of euros in swaps contracts from the London Stock Exchange to Deutsche Boerse in Frankfurt due to Brexit largely severing Britain’s access to the EU financial market.

“How long would be needed to transfer positions or flows identified as clearable inside the Union? How could the time needed be potentially reduced?” the document seen by Reuters said.

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