Brexit’s $78 Trillion Derivatives Spat Needs Fix Now, Banks Say
- Lobbying groups want continued access to London clearing
- Industry is pressing for solution well ahead of year-end
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The world’s biggest banks pressed policy makers to pass an urgent Brexit fix to ensure European traders’ access to London derivatives clearinghouses and avoid rupturing 61 trillion pounds ($78 trillion) in contracts.
The industry’s top lobbying associations told the European Commission, the European Union’s executive arm, that it must act fast or risk turmoil when the stopgap solution elapses in March. The call echoes pressure on the EU from the Bank of England, which has said firms might need to move business out of London as early as next month unless there is clarity.