EU banks given 18-months to cut reliance on UK clearers

The Commission approved a proposal to allow clearing houses in Britain to continue serving EU customers for 18 months from January. During that period EU banks should find another way sort out their clearances, VP Valdis Dombrovskis said,

“This will ensure financial stability, give market participants 18 months to reduce their excessive exposures to UK CCPs, allow EU CCPs to build up their clearing capability,” 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 euro-denominated interest rate swaps.

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