In a victory for the UK, Brussels has signalled it will allow EU banks to trade trillions through London until 2022 – even if there is No Deal.
BRUSSELS will let European banks trade trillions through the City of London until 2022 – even if there is No Deal, officials say the UK is the global leader in money market infrastructure for years, with firms acting as the middlemen for buyers and sellers. But EU banks had faced being cut off from these vital “clearing houses” at the end of the year if Brexit trade talks collapsed, ‘They panicked and gave in,’ says a source in Brussels.
Another ‘U’ turn by the EU
Those banks currently “clear” €716 trillion (£670 trillion) a year and the vast majority goes through London. With Brussels increasingly scared of an acrimonious split, they shared plans to give Euro firms an 18-month special licence to carry on using London. This is despite years of tough talks with Eurocrats saying they could never approve such a move, and botched attempts to try to poach British expertise away to EU financial powerhouses such as Paris and Frankfurt.
Although a low margin business, clearing is a critical foundation for global financial markets, ensuring trillions of dollars in swap trades complete safely. London’s clearing houses help cement the capital’s status as the world’s biggest centre for trading derivatives, adding to its historic attractiveness as a base for global banks. However, with Brexit looming, many companies have moved jobs to EU hubs. Lobby groups have warned that more could leave if euro clearing shifts to the eurozone.
It was revealed today that the president of the European Commission is expected to say that a UK-EU trade deal is still possible, but that trust over the Withdrawal Agreement is needed, in her annual flagship speech on Wednesday.
We hope you enjoyed this article “UK Brexit Victory: EU Banks Allowed to trade TRILLIONS through London until 2022- WITHOUT a Deal!”.
For more Political News from Home and Abroad, visit the Euro Weekly News website.