U.K. derivatives-clearing giants including a unit of London Stock Exchange Group Plc are pushing the European Union to guarantee that they’ll be able to continue serving the bloc’s biggest banks in the event of a no-deal Brexit, according to people with knowledge of the firms’ positions.
The European Commission, the EU’s executive arm, has to provide legal certainty on the clearing of trillions of dollars of derivatives contracts before Christmas or the U.K. firms will have to notify their EU members to close out their positions, two of the people said. That echoes the Bank of England’s call for the EU to spell out its plans by mid-December.
