UK clear­ing houses gain EU re­prieve

The Daily Telegraph - Business - - Business -

◆ Euro­pean Com­mis­sion of­fi­cials have ap­proved a pro­posal to al­low clear­ing houses in Bri­tain to con­tinue serv­ing EU cus­tomers for 18 months from Jan­uary, its fi­nan­cial ser­vices chief said yes­ter­day.

“This will en­sure fi­nan­cial sta­bil­ity, give mar­ket par­tic­i­pants 18 months to re­duce their ex­ces­sive ex­po­sures to UK [cen­tral coun­ter­party] CCPs, al­low EU CCPs to build up their clear­ing ca­pa­bil­ity,” Valdis Dom­brovskis said on Twit­ter. Bri­tain left the EU in Jan­uary and its un­fet­tered ac­cess to the bloc ends in De­cem­ber. LCH, a unit of the Lon­don Stock Ex­change, clears the bulk of eu­ro­de­nom­i­nated in­ter­est rate swaps, in ef­fect stand­ing be­tween two sides of a deal to cut the risk of de­faults.

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