EU Vows No-Deal Brexit Won't Block Banks From London Clearing

The European Union said it won’t allow a no-deal Brexit to cut the bloc’s banks off from London’s crucial financial infrastructure, which would put trillions of dollars of derivatives contracts at risk.

The European Commission, the EU’s executive arm, will ensure that financial firms don’t lose access to clearinghouses such as LCH Ltd., a unit of London Stock Exchange Group Plc, even if political negotiations break down and Britain quits the bloc abruptly next March, a commission spokesman said. Banks and U.K. regulators have been warning for months that EU action is needed to avert turmoil in financial markets.