Forced relocation of swaps clearing to EU would harm bloc, says London exchange

Restricting access to the EU economy and the Euro would place EU firms in competitive disadvantage

  
A dealer works at his desk whilst screens show market data following a vote on Prime Minister Theresa May's Brexit 'plan B' at CMC Markets in London, Britain, January 30, 2019.

A dealer works at his desk whilst screens show market data following a vote on Prime Minister Theresa May's Brexit 'plan B' at CMC Markets in London, Britain, January 30, 2019.

REUTERS/Dylan Martinez

LONDON - Forcing euro derivatives clearing to move from London to the European Union would bump up costs for customers and put EU firms at a competitive disadvantage to their international peers, the London Stock Exchange Group said in a note to clients.

"Restricting access to the EU economy and the Euro would place EU firms in competitive disadvantage against their peers and would also increase risk to financial stability both in the EU and more widely," LSEG said in a note issued on Friday.

(Reporting by Huw Jones; Editing by Toby Chopra) ((huw.jones@thomsonreuters.com; +44 207 542 3326; Reuters Messaging: huw.jones.thomsonreuters.com@reuters.net))


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