The EU should not relocate euro clearing
The European Union is set to reveal its policy on the clearing of euro denominated products in 'third countries' on Tuesday. Implementing a location policy that would deny liquidity to foreign clearing houses would stifle cross-border competition, and ramp up costs. It must not happen.
However, a protectionist desire has gripped the EU 27, with prominent politicians like German MEP Manfred Weber calling for the relocation of clearing.
This point of contention is neither new, nor solely Brexit related. The European Central Bank tried to yank euro clearing from the City in 2011,
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