UK clearing houses gain EU reprieve
◆ 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.