ECB Closes in on Power Over Euro-Derivative Clearing Post-Brexit
- European Commission backs ECB plan for oversight of industry
- Brexit poses ‘significant challenge’ to oversight: commission
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The European Central Bank moved closer to gaining power over the lucrative clearing industry, a crown jewel of London’s financial hub and a key flash point in Brexit negotiations.
The ECB on Tuesday won the European Commission’s backing in its push for power over clearing of euro-denominated financial contracts, which would give it more control over clearinghouses based outside the European Union, including those in London after the U.K. quits the bloc.