City faces fresh post-Brexit blow

[pellinore]

The City of London faces another post-Brexit blow to its dominance after the EU moved to require firms to settle more financial-risk reducing trades within the bloc.

The plan centres on trades in securities known as derivatives, and on financial market clearing houses, the intermediaries that enable the transfer of funds to sellers and financial products to buyers. Handling trillions of transactions each year, they are deemed an essential part of financial market plumbing that reduces risk.

Since Britain voted to leave the EU in 2016, the subject has become a battleground, as Brussels seeks to end what it sees as an over-reliance of European firms on London for euro-denominated derivatives trades.

City faces fresh post-Brexit blow as EU moves to restrict certain trades | Financial sector | The Guardian

Edited December 7, 2022 by pellinore

[pellinore]

As Michael O'Leary says, if isolationism worked, 'North Korea would be the world's most successful economy, and it isn't':

 

Edited December 7, 2022 by pellinore

[Ozymandias]

5 hours ago, pellinore said:

The City of London faces another post-Brexit blow to its dominance after the EU moved to require firms to settle more financial-risk reducing trades within the bloc.

The plan centres on trades in securities known as derivatives, and on financial market clearing houses, the intermediaries that enable the transfer of funds to sellers and financial products to buyers. Handling trillions of transactions each year, they are deemed an essential part of financial market plumbing that reduces risk.

Since Britain voted to leave the EU in 2016, the subject has become a battleground, as Brussels seeks to end what it sees as an over-reliance of European firms on London for euro-denominated derivatives trades.

City faces fresh post-Brexit blow as EU moves to restrict certain trades | Financial sector | The Guardian

This was on the cards once Brexit became a reality. The EU has always said that its reliance on the City cannot be allowed to continue to become long-term and it is actively seeking disengagement as painlessly as possible. European financial institutions have been pushing back, but the writing is on the wall.