Reuters logo
UK's Hammond warns of risks from moving clearing away from UK
May 4, 2017 / 2:26 PM / 7 months ago

UK's Hammond warns of risks from moving clearing away from UK

LONDON, May 4 (Reuters) - British finance minister Philip Hammond warned on Thursday of potential risks if the European Union moves the clearing of euro-denominated securities like derivatives and bonds to within the euro zone after Brexit.

“We approach the Brexit negotiations with a spirit of goodwill and we will consider any EU proposal before we leave on its merits,” Hammond said. “But we should be careful of any proposals which might disrupt growth, raise the cost of investment in Europe and the UK or weaken financial stability.”

The London Stock Exchange’s LCH clearing house clears most euro-denominated trades, but this activity will be outside the bloc’s legal framework after Brexit.

Earlier on Thursday, European Commission Vice President Valdis Dombrovskis announced the launch of an assessment of new options for the industry - closer supervision of clearing houses outside the EU, and requiring those who clear large amounts of euro-denominated securities to be located inside the bloc.

Dombrovskis said the Commission was not jumping to conclusions about the best way forward.

Writing by William Schomberg; Editing by Huw Jones

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below