The Scottish Mail on Sunday

£747bn a day busi­ness may move to EU


THE Euro­pean Com­mis­sion could this week out­line plans to force a lu­cra­tive chunk of City busi­ness to move to the eu­ro­zone.

The com­mis­sion has been look­ing at clear­ing houses, where banks of­fi­cially book big de­riv­a­tives trades with other fi­nan­cial in­sti­tu­tions.

Lon­don is a huge clear­ing cen­tre. The Lon­don Clear­ing House, part of the Lon­don Stock Ex­change, clears €850bil­lion (£747bil­lion) of euro-de­nom­i­nated con­tracts a day, three-quar­ters of the global mar­ket.

The com­mis­sion has tried to get all euro clear­ing moved to the eu­ro­zone, but was pre­vented by the Euro­pean Court of Jus­tice.

It has since out­lined three op­tions: to force con­tracts to move into the eu­ro­zone; to send reg­u­la­tors to over­see Lon­don clear­ing mar­kets; or to sim­ply ac­cept that the UK’s reg­u­la­tors are as good as those within the euro area. A de­ci­sion is ex­pected on Tues­day.

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