Proactive Investors - The European Union (EU) is facing increased pressure to rethink its current clearing strategy in London.
Clearing houses involves an intermediary standing between two parties in a trade to reduce market risk, according to the FT.
Banks, LCH and lobby groups, including the International Swaps and Derivatives Association, have stepped up efforts to overturn the commission’s plans, arguing the proposals are not workable and could wreak havoc on markets.
Since Brexit, it has been a key battleground, with the EU intent on moving important trades away from London and into Europe.
Europe’s largest banks, including BNP Paribas (EPA:BNPP) and Deutsche Bank (ETR:DBKGn), have openly opposed the plans, fearing extra costs and less efficient clearing processes.
London’s clearing house LCH, which stands to lose a sizeable chunk of business, has also pushed for a rethink.
The latest deadline, which the EU has said will be the final cut-off, is June 2025.