EU extends Britain’s CCPs equivalence to 2025
European Commission has on Tuesday agreed to prolong the permission for British central counterparties (CCPs) to continue performing clearing activities in the eurozone until June 30, 2025.
The clearing issue has become one of the main Brexit clashing points, as the EU is trying to win greater control over euro-denominated trades, and shift the majority of clearing activities to eurozone-based CCPs.
As the London Stock Exchange’s LCH department currently clears almost 90% of euro interest rate derivatives, EU officials stated that the 2025 extension will certainly be a final one, as the additional three-year period should be enough to shift a great part of the financial mediation operations back to the euro area.
European Commission financial services chief Mairead McGuinness noted: “The Commission plans to come forward with measures to reduce our excessive dependence on systemic third-country CCPs, and to improve the attractiveness of EU-based CCPs while enhancing their supervision.”
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