The news we’re reading this week includes –
- MEPs seek tougher rules on London euro clearing after UK quits EU – Financial Times, 7th August
The concern that the UK may lose some of the lucrative clearing activity following Brexit has been heightened this week, as the European Parliament intends to toughen EU plans to police London’s clearing business.
Next month, the EU parliament and national governments will discuss proposals that would mean UK clearing houses, that handle large volumes of euro-denominated contracts, would have to comply with EU rules and accept European supervision.
The intention would be to take discretionary powers away from the City, instead handing them to EU regulators who would then decide that because the volumes of euro clearing in London are so important to financial stability, they must be handled from within the bloc.
- Nasdaq and SIX Swiss Exchange plan OTC blockchain project – The Trade, 9th August
Nasdaq and SIX Swiss Exchange have formed a partnership that will provide blockchain technology for SIX’s OTC structured products business. The project will be integrated with several systems currently managed by SIX using Nasdaq’s blockchain architecture stack.
SIX extended its contact with Nasdaq last October, marking the tenth anniversary of the collaboration. As part of this, SIX extended the X-stream INET trading technology across equities, ETF’s structured products, fixed income markets, NASDAQ’s SMARTS surveillance and pre-trade risk management tools.
- Euronext finalises derivatives clearing deal with LSE – Financial Times, 8th August
- China targets mobile payments oligopoly with clearing mandate – Financial Times, 10th August