POST-BREXIT FINANCE
Policy chief gets possessive over City euro clearing
Euro-denominated clearing in Europe is dominated by the London Stock Exchange’s LCH clearing house in London
London is good at clearing euro-denominated derivatives deals and there is no case to shift the business to the continent after Brexit, says the policy chief for Britain’s financial sector. The combative stance of Catherine McGuinness, the new head of policy for the City of London financial district, contrasted with the more nuanced position of Bank of England governor Mark Carney, who has spoken of an "appropriate" amount of euro clearing staying in London after Brexit. Her comments on Tuesday came as the European Commission prepares to publish a draft law in June on euro clearing. France is in the vanguard of countries pushing for the lucrative business to relocate to the eurozone after Britain leaves the bloc in 2019. McGuinness said clearing was a $1-trillion-a-day business and it was natural that people wanted a slice of the cake. "And in this case, all the evidence points one way: that the mass uprooting and offshoring of part of the industry – of clearing of transactions in o...
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