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London's clearing hub status under threat

Industry executives expect the European Central Bank to reprise attempts made in 2014 to force all euro-denominated clearing into the eurozone

London's clearing hub status under threat
Photo: iStockPhoto

London's status as the major centre for clearing euro-denominated transactions is likely to come under threat after the UK voted to leave the European Union, according to practitioners and market experts.

Clearing houses, or CCPs, have become critical pieces of market infrastructure amid the post-financial crisis push to help to reduce risk by requiring their members - typically large banks - to post collateral to guarantee trades in the event of a counterparty default.

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