London-based banks could face "nightmarish" decisions should they lose access to euro-clearing trading, according to the Japanese Ambassador to the UK. The comments came as a senior official in Brussels said that Britain would have no choice but to leave the single market if it wanted to continue trading with other European countries. Business, in that case, would be likely to transfer to Frankfurt and Paris.
London-based banks could face "nightmarish" decisions should they lose access to euro-clearing trading, according to the Japanese Ambassador to the UK. Since 1999, London has acted as the centre of euro-clearing for derivatives, but countries in the EU27 see it as unacceptable that the main clearing house would be located outside of the EU following Brexit. Business, in that case, would be likely to transfer to Frankfurt and Paris.