EU to force trading out of London after Brexit
The European Union is expected to propose that so-called clearing of euro-denominated securities be moved from London after Brexit, the CEO of the Euronext stock markets operator, Stephane Boujnah, said on Friday.
The European Commission is due next month to propose a draft law on regulating foreign clearing houses, which stand between the two sides of a trade to ensure its orderly completion.
"If the decision is taken to relocate clearing of euro denominated within the European Union, then clearly we will make sure it has the best impact for the Euronext market and Euronext players," Mr Boujnah said during an earnings conference call.
"I believe this option is likely to prevail."
Industry bodies and UK policymakers warned that forced relocation of clearing would hurt efficiencies. London accounts for as much as 70pc of the activity.
Meanwhile, Germany could make it easier to hire and fire senior bankers in an exception to strict labour rules, is it seeks to attract finance groups from London after Brexit. (Reuters)