EU’s plans to split derivative clearing market could impede global financial system

By in

The EU’s efforts to move sectors of the multi-trillion pound derivative clearing market trade from London into the Eurozone would be damaging to global financial stability, the Bank of England’s Deputy Governor, Mr Jon Cunliffe has stated.

The UK is the global centre for clearing financial instruments, a business which is most efficiently done on a large scale in one place. The sector has also been purposely concentrated in London by regulators who want risk concentrated in one area so it can be monitored and managed at a much higher level, splitting this would be impeding the global financial system.