London in Distress as ECB Seeks Control Over €1Trillion Euro Clearing After Brexit
June 24 , 2017
Frankfurt-based European Central Bank (ECB) has proposed to have more oversight over the €1 trillion per day euro clearing market, currently dominated by London. ECB’s move comes after a European Commission’s report asked the European Union to have more powers on financial product clearance (dominated in Euro currency) after Brexit. CEO of the London Stock Exchange, Xavier Rolet, had warned just after EU referendum, that UK could witness 100,000 job-loss if London loses the ability of processing euro-denominated transactions. London is also facing difficulties in retaining major investment banks, who are considering to move their operations from London to EU.