EU court to rule on ECB challenge to UK clearing

London

THE European Union's (EU) top court rules next month on a battle between the European Central Bank (ECB) and Britain whose outcome could reduce London's role as the bloc's top financial centre, lawyers said.

The ECB says clearing houses - third parties standing between two sides of a trade to ensure its completion - that process more than 5 per cent of any euro-denominated security should be based in the single currency area. The central bank argues that this would make it easier to help an ailing clearer.