Bank of England (BoE) official Sir Jon Cunliffe told the Treasury Select Committee yesterday that talks are continuing with EU regulators to try to persuade them to allow British clearing houses to serve clients across the continent.
Cunliffe said to the committee that the British have “pretty much done all that we can do unilaterally”, adding that the responsibility has now been handed to European authorities to preserve stability in the event of a no-deal Brexit.
Surprisingly, the bank has been outspoken in its plea for the EU to act to authorise central counterparties, with some European politicians eyeing London’s dominant industry for clearing euro-denominated derivatives, used by financial firms to manage risk.
Furthermore, BoE governor Mark Carney has written to the committee stating the bank will provide an analysis of how the Brexit withdrawal agreement will affect its remits for monetary policy and financial stability, even in a no-deal situation.
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