Eu panicking .........

[SirGalahad]

The clearing business isn't important to the EU, it's absolutely totally 100% critical to their survival, no other country comes within ****ing distance of London in that respect. Well build an alternative.... good for you ya got T+3 days trading to do it, or kiss your ass goodbye.

The EU gave 3 London clearing houses temporary equivalence to end in march this yr.

A point that needs to be stressed is Frankfurt cannot just take business away, it affects Liquidity, there are many more factors at play.

 

[IT Minion]

It's not Frankfurt that provides liquidity as I understand it. It's the banks that operate as clearing houses in either their London or Frankfurt branches.

Banks have moved country before and many have opened up subsidiaries in Paris or Frankfurt for just this reason.

 

[SirGalahad]

It's not Frankfurt that provides liquidity as I understand it. It's the banks that operate as clearing houses in either their London or Frankfurt branches.

Banks have moved country before and many have opened up subsidiaries in Paris or Frankfurt for just this reason.

There is the thorny issue of a large chunk of euro clearing taking place outside the jurisdiction of the ECJ.

 

[EddieM]

But other countries do offer it, there's no intrinsic reason it has to happen in London and the loss of it to new York or Frankfurt would hurt the UK economy and drag a lot of other financial services with it with a hit to jobs, economy and tax revenue.

That we might threaten to stop it at zero notice as a weapon to hurt them is the best reason for the EU to enact those rules about excluding us from strategically important business.

So yes, we could cut off our own nose to hurt the EU, but they could shut off some of our electricity and gas. Trying to destroy their entire financial system would not be taken well.

We

The EU gave 3 London clearing houses temporary equivalence to end in march this yr.

A point that needs to be stressed is Frankfurt cannot just take business away, it affects Liquidity, there are many more factors at play.

How magnanimous of them. I'm not saying a good idea, as it manifestly is a **** poor idea, however......

 

[JohnD]

you can always rely on saj

 

[Notch7]

The clearing business isn't important to the EU, it's absolutely totally 100% critical to their survival, no other country comes within ****ing distance of London in that respect. Well build an alternative.... good for you ya got T+3 days trading to do it, or kiss your ass goodbye.

yes but what you are missing is that both seller and buyer need the transaction.
the UK wont refuse to take business

The EU have regulatory control, it is theirs to give not ours to take.

They are in process of granting temporary equivalence, but it is the EU that can decide to scale up the business inside the SM, and create nudge factors to encourage business to move across.

The brexit campaign was fought on the premise that the UK would take back control when it left the EU....which has a fundamental flaw, if the UK take back control, then so does the EU. So after we leave the institutions the EU becomes a competitor and it has the power to impose, ignore, alter regulations at will -the UK will have zero power other than to use whatever bargaining chips it has to negotiate with.

 

[EddieM]

yes but what you are missing is that both seller and buyer need the transaction.
the UK wont refuse to take business

The EU have regulatory control, it is theirs to give not ours to take.

They are in process of granting temporary equivalence, but it is the EU that can decide to scale up the business inside the SM, and create nudge factors to encourage business to move across.

The brexit campaign was fought on the premise that the UK would take back control when it left the EU....which has a fundamental flaw, if the UK take back control, then so does the EU. So after we leave the institutions the EU becomes a competitor and it has the power to impose, ignore, alter regulations at will -the UK will have zero power other than to use whatever bargaining chips it has to negotiate with.

They have no control if they are unable to clear funds, that's immutable. Dead in 72 hours, all delinquent states, absolute financial chaos would ensue, there is absolutely nowhere in the world that can provide adequate backup. Not gonna happen though as it's completely suicidal.

 

[ellal]

Not gonna happen though as it's completely suicidal.

Well quitters voted for brexit, so 'completely suicidal' is a definite possibility....

Again!