Editorial Board

The City of London After Brexit Isn't Just About Jobs

Britain and the European Union have a common interest in financial infrastructure that works.

May 15, 2017 at 6:00 AM UTC

By The Editorial Board

The Editorial Board publishes the views of the editors across a range of national and global affairs.

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Britain's new relationship with the European Union is still a long way from being settled, but Brexit has started a process that is bound to hurt the City of London. Earlier this month, the European Commission launched a review of the rules governing one of the City's lucrative lines of business -- the clearing of derivatives denominated in euros.

The U.K. wants to keep it in London. The European Central Bank was skeptical about that even before Brexit. Now Brussels is considering two alternatives -- imposing stricter EU oversight over clearing houses in London or forcing some activities to relocate within the euro zone.