The boss of the London Stock Exchange has slammed the European Commission over its consultation on euro clearing, suggesting the process will lead to “complete chaos”.
Xavier Rolet believes the commission, which is considering a relocation policy, has not given itself enough time to deal with an “extraordinarily complex” subject area.
Commission vice president Valdis Dombrovskis launched a consultation in early May as it considers various options for changing rules around clearing of euro-denominated derivatives.
The market is currently dominated by London and so the UK’s Brexit vote has raised concerns within the EU. Options on the table include forcing relocation of euro clearing activities and enhancing EU oversight of the market.
With the consultation due to end later this month, Rolet told the Sunday Telegraph: “It’s going to be complete chaos. This has not been properly thought through…
“To give the market a month for a consultation, it’s never happened in the history of the EU. You want a policy proposal in a month? Frankly that is not how good policy is made. Consider the systemic issues linked to a botched or hurried migration. This is extraordinarily complex.”
In a wide-ranging interview, Rolet also denied that Brexit was to blame for the breakdown of his company’s mega-merger with Deutsche Boerse.
Meanwhile, Deutsche Boerse itself waded into the current euro clearing debate at the end of last week. Eric Muller, chief executive of Deutsche Boerse’s Eurex clearing unit, called into question claims that shifting the market would create $77bn of new costs for banks.
He told Bloomberg: “The $77 billion number is very far from a realistic number.”