In December, the European Commission (EC) set aside its hard-line rhetoric on what it sees as the bloc’s overreliance on London for euro-denominated derivatives clearing, in favour of a more measured approach. Under the proposals, banks will have to set up accounts with minimum volume levels at clearinghouses in Paris and Frankfurt, rather than shift trillions of euros of transactions across the channel in one fell swoop.
“The requirement does not imply that all clearing should be repatriated to the EU,” said the EC in a statement. “It covers only a portion of the relevant activities and does not forbid clearing in other jurisdictions.”
