EU could slap location requirement on large clearinghouses
They may be forced to set up shop within the EU in order to continue doing business in the bloc
London
THE European Union could force the biggest foreign derivatives-clearing firms to set up shop in the bloc if they want to continue doing business there, as policymakers brace for the changes that Brexit will bring to an industry in which London plays a key global role.
The European Commission on Tuesday proposed a two-tier system for non-EU clearinghouses. Smaller firms would carry on operating under existing rules, while those deemed systemically important to European financial markets would face stricter scrutiny and, ultimately, could be forced to move clearing of EU derivatives inside the bloc.
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