MNI BRIEF: EU, Banks Seek Path On Post-Brexit Clearing Move

An EU working group will meet with banking and clearing house industry representatives Friday to discuss "opportunities and challenges" in moving cleared derivatives from the UK to the EU, according to an annotated agenda seen by MNI. The meeting, a first formal opportunity for many in the financial industry underline their opposition to such a move, will discuss many of the impediments and obstacles to such a move before deciding on next steps.

Sources suggest the EU's working group process was just a way of understanding the technical issues involved in order to avoid any pitfalls and glitches during the transition period. One clearing industry source recently described the EU's position as, "We know it's difficult, we just want you to do it" in a conversation with MNI.

New York's clearing industry has been a major benefit from Brexit, seeing a pick-up from flows out of both Europe and the UK, sources have told MNI.