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Home / World / Brexit News: Brussels says City will continue to be an important financial hub – even after NO-DEAL | Politics | news

Brexit News: Brussels says City will continue to be an important financial hub – even after NO-DEAL | Politics | news



Vice-President of the European Commission, Vladis Dombrovskis, has pledged himself to distributors across the continent and has assured them that they will be able to access major clearing services for derivatives in the UK, regardless of the outcome of the Brexit negotiations. Www.socialistgroup.eu/gpes/sessiond…01&place=STR Regarding financial regulation, the relief warned that banks and companies in the EU would continue to have UK – based clearing houses. English: www.socialistgroup.eu/gpes/sessiond…04&place=STR

But Mr Dombrovskis, who is also responsible for the settlement of derivative transactions if the talks with Brussels were to be short-lived.

He told the Financial Times that this must also be linked to the willingness of the UK to remain close to the regulatory and supervisory standards of the European Union.

The vice-president of the European Commission warned: "If we have to act, we would do so only to the extent necessary to avert risks of financial stability, an exit without agreement, under strict conditions and with limited duration.

This demonstrates the growing fears of EU regulators about the consequences of a no-deal Brexit and the potential significant impact on the operation of clearing houses, which has become a central financial system of the study since the beginning of the 2008 recession.

The Vice-President of the European Commission added every short The timely solution would be based on EU market access rules that could be used for the temporary approval of UK-based clearing houses where checks and bills of exchange are exchanged between member banks, such that only the balances have to be paid in cash.

In recent weeks, however, Brexit negotiations appear to have faltered again, despite the fact that two EU summits have met with leaders from around the world to clear a deal.

Theresa May and Brussels disagree on how they could solve the Irish border problem Their ideas about a "restraint system" remain very different and no agreement is in sight.

With fears of no-deal-Brexit growing, European banks and companies could be discouraged under EU law from using UK companies

which process the bulk of the $ 530 trillion global derivatives market US dollars and protect users from the risk of default and from legal and trade policy issues.

European companies can not use clearing houses outside the US EU, unless Brussels recognizes them as properly supervised.

But those residing outside the UK are not of the order of magnitude of LCH, the UK's Clearing House, which is managed by the London Stock Exchange.

Fears have grown because of Europeans Banks and non-financial corporations account for 1

4 percent of the interest rate derivatives business.

It follows months of warnings from the largest European financial institutions that companies can face massively rising trading costs or hedge their market risk positions – without access to clearing houses in London.

The lucrative sector has warned that there are no other venues for certain contracts. Other positions in derivatives portfolios.

In a further boost to UK companies, the Bank of England has proposed granting short-term licenses with maturities of up to three years to allow them to access EU clearing houses even without closing on the Brexit scenario.

Ms. May and Chancellor Philip Hammond will meet with around 120 business leaders and major investors on Wednesday to reassure their concerns about a no-deal Brexit.

They meet with executives to discuss Brexit and this week's annual budget, which includes spending pledges and higher taxes on technology companies.

The Prime Minister's spokesman said: "It's part of the regular commitment we have with the economy. It is an opportunity for them to ask the prime minister and of course the chancellor questions about anything they might be interested in.

"Of course, the Brexit can certainly be brought up."


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