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Ministers step up fight to protect City from EU trading shake-up

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    Ministers step up fight to protect City from EU trading shake-up

    The Treasury has filed a second lawsuit against the ECB attempting to block its "location policy" that would see clearing houses dealing in euro-denominated instruments forced to move within the eurozone.

    An initial lawsuit was filed in autumn challenging the EU's proposals to ban clearing houses outside of the euro area from handling more then 5pc of the trade in any one euro-denominated instrument. As London handles 40pc of global over-the-counter derivatives trades and 75pc of Europe's, the ban would be highly damaging for the City. The new rules would also limit clearing of euro-denominated trades outside the eurozone to a maximum of €5m (£4.2m).

    A second legal case was lodged this year. "There is no change to our policy, approach or position in any way – the government continues to believe the ECB's proposed 'location policy' contravenes European law and fundamental single market principles by preventing the clearing of some financial products outside the euro area," a Treasury spokesman said.

    The battle over clearing houses comes at a particularly sensitive time. LCH.Clearnet, one of the largest operators in London, is in talks with the London Stock Exchange that could see the LSE take a 51pc stake. The deal would value the company at around £1bn. The second suit was filed with the European Court of Justice after the ECB signalled its intent to pursue the location policy. (AtW's comment: I hope this one isn't based on human rights law that supposedly should guarantee right of City firms to profit!)

    The legal case is part of a wider project to reform the clearing market from a national to a trans-national industry. It dates back to 2001 when the ECB published its intentions in a paper on effective risk management.

    Source: Ministers step up fight to protect City from EU trading shake-up - Telegraph

    AtW's comment: Now this was really coming - USA got control over clearing houses because ultimately USD is their currency, same can be said about any country with a currency in the world but yet for some reason UK which is outside of Euro zone thinks it should be different. Essentially this means that whoever controls the currency decides what the rules are - this is why transaction tax enacted in Eurozone will still hit the City - unless they totally stop trading euro stuff, which is just as well for the rest of Europe - less spekulation and more of normal investing.

    #2
    If only they put as much effort into protecting other areas of the economy.
    McCoy: "Medical men are trained in logic."
    Spock: "Trained? Judging from you, I would have guessed it was trial and error."

    Comment


      #3
      Originally posted by AtW View Post
      the government continues to believe the ECB's proposed 'location policy' contravenes European law and fundamental single market principles by preventing the clearing of some financial products outside the euro area.
      for some reason UK which is outside of Euro zone thinks it should be different
      It is not just "for some" reason.
      EU law requires that all products can be traded anywhere in the EU. The legal judgement will decide if that applies to financial transactions.

      As somebody else said, it is a shame that nobody seems willing to pursue this for all industries and products.
      Just saying like.

      where there's chaos, there's cash !

      I could agree with you, but then we would both be wrong!

      Lowering the tone since 1963

      Comment


        #4
        Originally posted by lilelvis2000 View Post
        If only they put as much effort into protecting other areas of the economy.
        Yes.

        Especially our agriculture and fisheries. Which have been right royally fecked by being in the EU.

        Comment


          #5
          Originally posted by Arturo Bassick View Post
          EU law requires that all products can be traded anywhere in the EU. The legal judgement will decide if that applies to financial transactions.
          What about firearms that are restricted in UK so badly having a CS gas can is treated as firearms offense?

          Whoever prints the money decides which clearing houses are official - that how it has always been, UKs demands are laughable.

          Comment


            #6
            Originally posted by AtW View Post
            What about firearms that are restricted in UK so badly having a CS gas can is treated as firearms offense?

            Whoever prints the money decides which clearing houses are official - that how it has always been, UKs demands are laughable.
            I think you will find it is perfectly OK for a Brit to purchase a firearm from a country where they are legally on sale.

            You seem to have a complete lack of understanding over the EU and single market legislation.
            Just saying like.

            where there's chaos, there's cash !

            I could agree with you, but then we would both be wrong!

            Lowering the tone since 1963

            Comment


              #7
              Originally posted by AtW View Post

              .. that how it has always been, UKs demands are laughable.
              Your opinions on international finance
              Work in the public sector? Read the IR35 FAQ here

              Comment


                #8
                Originally posted by AtW View Post
                What about firearms that are restricted in UK so badly having a CS gas can is treated as firearms offense?

                Whoever prints the money decides which clearing houses are official - that how it has always been, UKs demands are laughable.
                Sorry AtW, but I've got to laugh again!

                Comment


                  #9
                  Originally posted by OwlHoot View Post
                  Your opinions on international finance
                  WHS. I'm amazed that AtW parades his ignorant views on a public forum now he's an MD. That sort of lack of judgement bodes ill for stakeholders in the company.
                  Hard Brexit now!
                  #prayfornodeal

                  Comment


                    #10
                    Originally posted by sasguru View Post
                    WHS. I'm amazed that AtW parades his ignorant views on a public forum now he's an MD. That sort of lack of judgement bodes ill for stakeholders in the company.
                    I don't think there is any relevancy between my views on the matter under discussion in this thread has any relevancy to the job that I do as MD since our business is in no way affected whichever way above mentioned lawsuits go.

                    Given that there are lawsuits it means that there is disagreement on the matter and until this is settled in court my view is as valid as the other.

                    For example UK banned 500 euro notes, BBC News - Organised crime fears cause ban on 500 euro note sales - you don't see EU sueing UK for it because it's matter of member state who isn't part of the eurozone to decide how foreign currencies are treated.

                    On the other hand ECB that is responsible for euro the currency is entitled to completely ignore UK's objections since it's not a party to the agreement in the first place.

                    Comment

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