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EU Announces Extension To Allow European Banks And Trust Funds To Use 'UK Clearinghouse'


The European Union announced on Tuesday that it would allow European banks and trust funds to continue to use the Clearing House for settlement of euro-denominated contracts until June 2025. Originally, this period ended in June this year. It is understood that at present, the British Clearinghouse still handles about 90% of euro-derivative financial products. And since Brexit, the EU has been expecting euro-denominated contract settlements to move out of London, bringing business and jobs back to Europe. However, due to this transfer, the industry estimates that it may cost billions of euros and it will take some time. In order to avoid destabilizing the market, the EU decided to extend the deadline, but stressed that this will be the last extension. The financial industry is the main business of the UK, and the above news is undoubtedly a great positive factor for the UK. It can be seen as a positive factor for the British economy and even the pound.
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