-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI SOURCES: EU Lays Down Law To Clearing Houses On Exiting UK
The European Commission took a hard line with clearing houses in a recent Working Group meeting on relocating euro derivatives exposures from London to the EU, dismissing objections from industry representatives and setting a tight schedule to tackle technical obstacles before the June 2022 deadline, participants in the meeting told MNI.
London-based clearing member banks warn that moving euro exposures is next to impossible, but Ugo Bassi, head of markets at the Commission's financial services directorate, insisted that Brexit makes a continuing systemic role for UK clearing houses unacceptable and that the question is not whether but how euro exposures can be transferred to the EU, one participant in the Working Group said.
The Commission has scheduled monthly plenary sessions of the Working Group along with weekly breakout meetings in the lead up to the June 2022 deadline after which London clearing houses lose their authorisation to operate in the EU.
"My sense is that the authorities have not yet understood the problem of tearing up existing contracts. You can't just transfer from one CCP to another, both parties have to agree," said one banking sector representative at the meeting, also attended by financial regulators like the ECB and ESMA.
SOURING ATMOSPHERE
Two major U.S. banking groups, with a group base in London were said to have been irritated not to receive an invitation, which some saw as a further Commission effort to turn the screws on banks headquartered outside the euro area.
London-based clearing member banks argue that much business will leave the UK not for the euro area but for the U.S., where CCPs enjoy equivalence status with EU clearers. But the lack of euro liquidity pools in the U.S. might make this a more costly option.
"No-one is saying everything in the EU. It is about not 100% in the UK and an appropriate balance in light of monetary policy and financial stability prerogatives," said one EU source.
The EU-UK rift over the Northern Ireland Protocol has further soured the atmosphere in wider talks over a financial sector memorandum of understanding, which is set to be concluded by the end of this month but which will commit both sides only to regulatory cooperation, rather than the equivalent status which would allow mutual market access.
The Northern Ireland impasse as well as EU perceptions that the UK authorities are already diverging from EU regulations could mean any subsequent talks on equivalence will be stillborn.
"The UK will have deregulated so much there will be no way back to equivalence," the source said.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.