Market participants from London and continental Europe have voiced their support for an enhanced supervision model to govern euro derivatives clearing post-Brexit.
Frankfurt Main Finance and Paris Europlace released a joint statement last Wednesday backing the model put forward in June, which requires non-EU clearing houses to accept more rigorous oversight.
The two financial centres are not asking for a location policy but would like to see central clearing counterparties (CCPs) brought under the enhanced supervision of EU authorities going forward. Exactly what this enhanced supervision will look like is not yet clear, nor is who would do it – either the European Central Bank (ECB) or the European Securities and Markets Authority (Esma).
Debate over whether London can maintain its status as the euro clearing hub of Europe after Brexit has raged since the vote to leave the EU last year....