Clearing and settlement updates
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US and European banks and asset managers have urged Brussels to extend the permit granting EU banks access to UK clearing houses to prevent a “major” market disruption when the licence expires next year.
A clutch of leading lobby groups including the New York-based International Swaps and Derivatives Association (Isda) and the European Fund and Asset Management Association have asked the European Commission for more time for the market to shift business away from the UK.
The push will reignite one of the longest-running, but not fully resolved, issues in financial markets created by the UK’s exit from the EU at the start of 2020. Since the 2016 referendum, EU politicians have been pushing market participants to move clearing of euro-denominated swaps from London to the eurozone. Financial…