Holy .... this is gonna get very nasty on both sides I am afraid: I think one side clearly has the upper hand here...
"Ms Merkel, however, made it clear that Britain would not have full access to the single market unless it accepted free movement, setting the stage for a Brexit showdown between the EU and Mr Cameron’s successor." Source FT
AND FURTHER:
"The City of London should no longer be able to clear euro-denominated trades, the French president said on Tuesday, adding to post-Brexit fears.
François Hollande said at the end of a summit in Brussels where EU leaders started trying to pick through the wreckage of David Cameron’s referendum defeat that it would be unacceptable for the crucial stage in the trading of derivatives and equities to take place in the UK.
“The City, which thanks to the EU, was able to handle clearing operations for the eurozone, will not be able to do them,” he said. “It can serve as an example for those who seek the end of Europe … It can serve as a lesson.”
The removal of the City’s right to clear in euros is a cherished goal of the European Central Bank in Frankfurt but one that was previously thwarted by the UK in the EU courts.
The ECB had argued it was unfair for it to be expected to provide emergency support to clearing houses that operated outside its jurisdiction. The UK had argued that a “location policy” would discriminate against Britain and challenge its role in the single market. George Osborne, UK chancellor, described the UK’s court victory in 2015 as a “major win for Britain”.
Mr Cameron made the prevention of any further such encroachments by the ECB one of the priorities of his, ultimately futile, renegotiation of the terms of Britain’s EU membership.
Clearing houses such as Deutsche Börse’s Eurex Clearing and London’s LCH.Clearnet confirm trades made on the financial markets and minimise disruption when a trader cannot honour its obligations. London has become a world leader for the clearing of some types of euro-denominated derivatives.
Traders have said the ECB’s location policy would be a warped anomaly in the globalised marketplace for derivatives, creating a Balkanisation of the market.
Still, while the fight over clearing became a point of principle for the UK government, Mervyn King, the former governor of the Bank of England, said a renewed push by the ECB would not have a huge impact on the City.
“The City is much more than a small number of banks that want to trade securities in Europe,” he said. “People all around the world” would still want the benefit of Britain’s legal system when drawing up financial contracts." Source FT
"Ms Merkel, however, made it clear that Britain would not have full access to the single market unless it accepted free movement, setting the stage for a Brexit showdown between the EU and Mr Cameron’s successor." Source FT
AND FURTHER:
"The City of London should no longer be able to clear euro-denominated trades, the French president said on Tuesday, adding to post-Brexit fears.
François Hollande said at the end of a summit in Brussels where EU leaders started trying to pick through the wreckage of David Cameron’s referendum defeat that it would be unacceptable for the crucial stage in the trading of derivatives and equities to take place in the UK.
“The City, which thanks to the EU, was able to handle clearing operations for the eurozone, will not be able to do them,” he said. “It can serve as an example for those who seek the end of Europe … It can serve as a lesson.”
The removal of the City’s right to clear in euros is a cherished goal of the European Central Bank in Frankfurt but one that was previously thwarted by the UK in the EU courts.
The ECB had argued it was unfair for it to be expected to provide emergency support to clearing houses that operated outside its jurisdiction. The UK had argued that a “location policy” would discriminate against Britain and challenge its role in the single market. George Osborne, UK chancellor, described the UK’s court victory in 2015 as a “major win for Britain”.
Mr Cameron made the prevention of any further such encroachments by the ECB one of the priorities of his, ultimately futile, renegotiation of the terms of Britain’s EU membership.
Clearing houses such as Deutsche Börse’s Eurex Clearing and London’s LCH.Clearnet confirm trades made on the financial markets and minimise disruption when a trader cannot honour its obligations. London has become a world leader for the clearing of some types of euro-denominated derivatives.
Traders have said the ECB’s location policy would be a warped anomaly in the globalised marketplace for derivatives, creating a Balkanisation of the market.
Still, while the fight over clearing became a point of principle for the UK government, Mervyn King, the former governor of the Bank of England, said a renewed push by the ECB would not have a huge impact on the City.
“The City is much more than a small number of banks that want to trade securities in Europe,” he said. “People all around the world” would still want the benefit of Britain’s legal system when drawing up financial contracts." Source FT