BREXIT
UK gets allies in its bid to continue clearing euro derivatives
Sweden, Spain and Ireland are concerned about any forced shift of derivatives-clearing firms
Brussels — The UK has gained potential allies in its bid to hold on to the business of clearing euro-denominated derivatives after Brexit takes effect. Sweden said an EU proposal to allow authorities to force the biggest foreign derivatives-clearing firms to set up shop in the bloc could prove excessive, according to a September 4 paper that summarises the positions of 10 governments. Spain highlighted the "considerable costs" a location policy would entail, and Ireland warned it could leave firms running to find clearing alternatives. France continued to lead the charge for greater EU control over clearing of euro derivatives, a position staked out by former president Francois Hollande shortly after the Brexit referendum in June 2016. The UK renewed its opposition to the plan, saying it would "increase costs and undermine stability by fragmenting markets and reducing their efficiency". The clearing of euro-denominated derivatives had already become a Brexit flash point when the Eur...
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