U.K.'s Bid to Retain Euro Clearing After Brexit Gains EU Allies

  • Sweden says fragmentation costs would be passed to end-users
  • France continues to lead push for greater control post-Brexit

The early morning sun rises in London.

Photographer: Chris Ratcliffe/Bloomberg
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The U.K. has gained potential allies in its bid to hold on to the business of clearing euro-denominated derivatives after Brexit.

Sweden said a European Union proposal to allow authorities to force the biggest foreign derivatives-clearing firms to set up shop in the bloc could prove excessive, according to a Sept. 4 document that summarizes the positions of 10 national governments. Spain highlighted the “considerable costs” a location policy would entail, and Ireland warned that it could leave firms scrambling to find clearing alternatives.