Germany’s finance minister has become the latest continental European politician to make a verbal grab for London’s euro clearing market.
Wolfgang Schauble today said that a “major part” of the euro-denominated derivatives clearing market, which is currently dominated by London, should take place within the European Union.
However, speaking at a time when the European Commission is considering a location policy on euro clearing, Schauble said the EU need not house “100 per cent” of the market.
“We will have to look for an arrangement,” Bloomberg quoted Schauble saying in Brussels. “We don’t need to do 100 per cent in the EU, but the major part should be in the EU.”
A number of City figures have warned the EU against making a grab for London’s euro clearing crown.
London Stock Exchange Group chief executive Xavier Rolet warned this week that a relocation policy could cost investors €100bn (£77bn) over the first five years.
Nex Group boss Michael Spencer said last week: “I personally find the dialogue about the forced attempt to move euro swap clearing back to Europe as a pretty extraordinary and retrograde and really nationalistic movement.”
And Catherine McGuinness, the City of London Corporation’s new policy chairman has warned that “the mass uprooting and offshoring of part of the foreign exchange industry – of clearing of transactions in one currency – would not only be vastly complicated, but also vastly damaging, and potentially destabilising”.