MEP fires warning shot at City over euro clearing
A German MEP reignited the explosive topic of London-based euro clearing on Tuesday, proclaiming that “EU citizens decide on their own money.” A move to force euro clearing to take place inside the eurozone could raise the cost of derivatives collateral and damage risk management, lawyers warned, as well as denting the City's position as a financial centre. Costas Mourselas and Jean Comte reports.
The statement came from a close ally of German chancellor Angela Merkel and European Commission president Jean-Claude Juncker, Manfred Weber. He sparked widespread speculation among market participants about London’s future as a major financial centre.
There are estimates that losing euro clearing could result in 83,000 job losses
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