LONDON (Reuters) – France’s banking industry body wants a new European Union law that would force non-EU banks to shift swathes of euro derivatives clearing from the City of London to Frankfurt, people familiar with the matter said.
Since Britain fully left the European Union in December, trading in euro shares and swaps have moved to the bloc. Brussels is now targeting euro clearing and last week began a fact-finding mission by meeting with banks.
Sources told Reuters that the French Banking Federation (FBF) does not believe it would work if non-EU banks were asked to move trillions of euros in interest rate swaps positions voluntarily from the London Stock Exchange’s LCH clearing arm to the bloc.
(Reporting by Huw Jones; Editing by David Goodman)