Wall Street’s Dependence on London Clearing Worries EU Watchdog
- EU sees risk if every bank shifts at once, ESMA’s Lober says
- Bloc wants more trades to be cleared inside its borders
The offices of London Stock Exchange Group Plc, right, in the City of London, UK.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Wall Street banks have made “no significant moves” away from London’s dominant clearing service since Brexit, raising concerns of a risky dash into the European Union as it continues to push for more of the business to move into the bloc.
Klaus Lober, the first chair of the clearing counterparties supervisory committee at the European Securities and Markets Authority, said banks need to act to avoid “uncontrollable, unmitigated systemic risk.”