News: Exclusive: Top banks asked to justify why they still clear euro swaps in London.
LONDON (Reuters) – Europe’s top banks have to justify why they don’t have to move billions of euros worth of euro-denominated derivatives clearing from London to the European Union after Brexit, as an EU document from Reuters showed on Tuesday.
UK clearers have EU permission to continue clearing for EU clients until mid-2022 to give banks time to move their euro positions to the continent. However, the change was slow.
“The current exposure to UK Central Counterparties (CCPs) raises a number of problems for the EU that should be addressed by reducing the EU’s exposure to UK CCPs,” the European Commission said in a questionnaire sent to banks.
Reporting by Huw Jones, editing by Louise Heavens
Original Source © Reuters