In response to the European Commission’s paper on Euro-clearing, Catherine McGuinness, Policy Chairman at the City of London Corporation said:

“London is the unparalleled leader when it comes to clearing.

“The UK accounts for 40% of the global trading. In contrast, the remaining EU27 member states account for less than 10% of the combined market share. The EU is simply not equipped to handle the volume of clearing that the UK does each day.

“Each day the UK clears on average $2.1tn (Dollars) – more than the €885bn (Euros) cleared, yet the US is not suggesting this function is repatriated.

“In taking steps to shift power away from UK clearing houses, the EU could damage itself unnecessarily. Fragmentation of foreign exchange and interest rate trading across Europe and the rest of the world could lead to firms’ costs increase by as much as 20%.

“We are also concerned that a location policy would impact across the international ecosystem in terms of market fragmentation and could increase systemic risk.

“The UK is the only place that can guarantee financial stability with the lowest possible cost implications. We do however welcome a structured and constructive discussion on these issues.”