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The EU could strip the City of a multi-billion pound business even before Brexit





LONDON — The European Union could once again try and strip the City of London of its euro clearing business, according to a Financial Times report.

The FT reports that European Commission is considering a change that would allow the European Central Bank control over where euro-based clearing occurs, allowing it to force the activities to occur in a country that uses the euro. The change, not yet fully decided on, would likely happen next Spring.

Clearing houses in London manage credit risk, acting as a middle-man in swaps and derivatives trades to guarantee the contract in the event that one read more >>>

Source:: BusinessInsider.Com

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