Brexit Will Cost London Loss of Euro-Denominated Business, EU MEP Warns

German head of the conservative European People's Party (EPP) group, Manfred Weber, today said that London should cede euro denominated financial business to EU cities like Amsterdam, Paris or Frankfurt once the UK eventually leaves the European Union.

The London Summit 2017 is coming, get involved!

Around £440 billion of euro-denominated trade pass through Britain’s clearing houses everyday thanks to so-called 'passporting' rules which currently allow them to sell their services freely across the rest of the EU and also give firms based in Europe access to Britain.

Weber's comments have dampened hopes that London will end up Hosting Hosting Hosting refers to the location of a broker’s technology stack. This is one of the most crucial elements of a brokerage that helps prevent the company from losing money due to being unable to mitigate latency risks.Brokers or exchanges are traditionally very vulnerable to latency arbitrage due to the speed with which financial markets move. The traditional datacenter locations for forex brokers are all centered at Equinix facilities around the globe. What Are the World’s Foremost Data Centers?Sin Hosting refers to the location of a broker’s technology stack. This is one of the most crucial elements of a brokerage that helps prevent the company from losing money due to being unable to mitigate latency risks.Brokers or exchanges are traditionally very vulnerable to latency arbitrage due to the speed with which financial markets move. The traditional datacenter locations for forex brokers are all centered at Equinix facilities around the globe. What Are the World’s Foremost Data Centers?Sin Read this Term the euro-related operations after Britain voted to leave the EU nearly a year ago.

“EU citizens decide on their own money. When the UK is leaving the European Union it is not thinkable that at the end the whole euro business is managed in London. This is an external place, this is not an EU place any more. The euro business should be managed on EU soil,” Weber said during a press conference in Strasbourg on Tuesday.

Weber, the leader of the largest group in the European Parliament, did not clarify whether he was referring specifically to euro clearing, which settles business and trade conducted in euros.

Along with the possible loss of passporting rights, the removal of Britain's role as the centre of euro-clearing is an issue that has been worrying traders and brokers in London. The City’s major players are already preparing to shift parts of their operations away from London as they fear that a hard Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term will result in the UK leaving Europe’s single market.

“I have the obvious interest that places like Amsterdam, like Paris, like Dublin, like Frankfurt, can win and others will lose. It will be not a positive thing for the City of London at the end,” said Weber, an ally of German Chancellor Angela Merkel.