The European Union is dialling back a threat to force major clearinghouses in London to relocate to continental Europe after Brexit, in a move that could cool a lengthy, politically charged battle over a jewel in the City of London’s crown, The Wall Street Journal reports.

But while the UK may be happier, the shift is unlikely to assuage US regulators. They have waded into the debate in recent months, warning that the EU’s proposals to increase its control over the clearing of euro-denominated securities and derivatives would impose new costs and burdens on US clearinghouses with EU customers.