Brussels just made a move on London's euro-clearing market

 
Helen Cahill
Follow Helen
London Creating 80% Of The Private Sector Jobs In The UK
Brexit has spurred the EU into action on clearing (Source: Getty)

The EU is making a move on London's euro-clearing market, and has been putting together proposals to corner UK businesses into relocating or submitting to regulation from Europe.

The European Commission plans to put out legislative proposals in June affecting London's clearing businesses, the Financial Times has reported.

Read more: This top US boss says UK needs to find its "swagger" to thrive after Brexit

Both France and Germany have previously suggested Brexit will curb London's dominance in euro-clearing, and now it appears the bloc is moving ahead with plans to impose restrictions on UK firms.

A draft policy document proposes "more centralisation of supervision" of clearing businesses in the EU if they provide "critical capital market functions", according to the FT. In addition, Brexit will have a "significant impact" on oversight because Britain will have a substantial power in the markets, but will be outside the EU's regulatory reach.

For non-EU firms, there will be arrangements based on "objective criteria" to make sure that any external clearing markets playing a significant role in the EU's financial markets are subjected to EU oversight.

"This includes, where necessary, direct supervision at EU level [and/or] location requirements," the paper said.

Related articles