Why euro clearing should leave London

Author: | Published: 24 Aug 2017

Markus Ferber, MEP discusses why he believes the home of this activity, which is central to the stability of the derivatives market, is in the eurozone

The United Kingdom's decision to leave the European Union has raised quite a few questions about the future of the City of London as of one of Europe's and the world's major hubs for financial services. One issue in particular has been put into the spotlight: the question of whether or not the clearing of euro-denominated derivatives that largely takes place in London can remain there or should be moved into the eurozone.

Ultimately, the question boils down to the issue of liability and setting the right incentives. The 2008/9 financial crisis has shown that it is never a good idea to disconnect the upsides of any economic activity from its potential risks and downsides. Therefore, one of the EU's...


 

 

close Register today to read IFLR's global coverage

Get unlimited access to IFLR.com for 7 days*, including the latest regulatory developments in the global financial sector, updated daily.

  • Deal Analysis
  • Expert Opinion
  • Best Practice

register

*all IFLR's global coverage published in the last 3 months.

Read IFLR's global coverage whenever and wherever you want for 7 days with IFLR mobile app for iPad and iPhone

"The format of the Review has changed over the years; the high quality of its substantive content has not."
Lee C Buchheit, Cleary Gottlieb

register