A host of influential European banking groups have called for continued access to London’s lucrative derivatives market – weakening Brussels’ hand in negotiations over post-Brexit financial services.
The European Union has so far only allowed temporary access to London for companies housed within the bloc, but over the weekend a letter emerged from groups including the European Association of Co-Operative Banks and the European Banking Federation.”
The group said it was “crucial” that EU firms continue to have access to the City’s markets.
A current exemption to the rules runs out in June of next year.
An extension would be the second Brussels climbdown in recent weeks, after the bloc’s financial services commissioner Mairead McGuiness said earlier this month that an extension to another exemption around clearing would also be negotiated.