Partner Masoud Zabeti has commented in S&P Global Market Intelligence article 'Euro clearing could continue from London post-Brexit, but with EC supervision'.
According to Masoud Zabeti, head of the finance & banking disputes group at law firm Mishcon de Reya, the EC appears to be serious about encouraging derivatives-related business to leave London, rather than attempting to regulate the industry from afar.
"It seems to me that this is just the start of preparations to gain control of that euro clearing market," he said in an interview. "I'm not even sure that the U.K. would accept regulation over this segment of the market anyway, but there are still so many unknowns at the moment."
On the subject of whether restrictions on euro clearing would lead to an exodus of banks from London, Zabeti said institutions affected would most likely be considering a move anyway, given that it remains unclear whether U.K.-headquartered banks will retain the passporting rights that allow them to do business freely across the EU.
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