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+UPDATE+
EU & US do deal to open up EU financial markets to US banks.
As UK banks have only time limited access to EU financial markets it is likely that without a deal UK clearing banks will lose out to EU & US banks putting at risk London’s role as dominant financial centre.
EU & US do deal to open up EU financial markets to US banks.
As UK banks have only time limited access to EU financial markets it is likely that without a deal UK clearing banks will lose out to EU & US banks putting at risk London’s role as dominant financial centre.
2/
Understand that the agreement requires US banks to adhere to EU risk management requirements - something that the UK wanted to avoid due to “sovereignty issues”.
Understand that the agreement requires US banks to adhere to EU risk management requirements - something that the UK wanted to avoid due to “sovereignty issues”.
3/
EU concerned with avoiding another financial turbulence like the 2007 global crisis and in maintaining EU banks competing advantage - so the EU-US agreement is considered a key part of this plan.
UK not involved in these discussions.
EU concerned with avoiding another financial turbulence like the 2007 global crisis and in maintaining EU banks competing advantage - so the EU-US agreement is considered a key part of this plan.
UK not involved in these discussions.
4/
City new outlets & Reuters now reporting on this.
Effectively ends UKs determining role in EU financial markets as US banks gain regulatory equivalence & market access providing they stick to risk requirements.
In financial terms this is as historic as it gets.
City new outlets & Reuters now reporting on this.
Effectively ends UKs determining role in EU financial markets as US banks gain regulatory equivalence & market access providing they stick to risk requirements.
In financial terms this is as historic as it gets.
5/
Of course this reflects well on the US-EU relationship under Joe Biden...but be in no doubt...
...these negotiations will have started under Trump.
So while Express & Telegraph were churning out Brexit boost & special relationship stories this was what was really happening.
Of course this reflects well on the US-EU relationship under Joe Biden...but be in no doubt...
...these negotiations will have started under Trump.
So while Express & Telegraph were churning out Brexit boost & special relationship stories this was what was really happening.
6/
First media reporting coming through now: https://www.reuters.com/article/eu-usa-clearing-idUSL1N2K20RU
First media reporting coming through now: https://www.reuters.com/article/eu-usa-clearing-idUSL1N2K20RU
7/
Understand EU strategy here was part of a 3 Pilar approach:
1. EU banking liquidity & competition
2. Best practice risk management
3. Seriously cutting down on tax haven use
Brexit ironically may have helped accelerate this process as dominant player UK no longer involved.
Understand EU strategy here was part of a 3 Pilar approach:
1. EU banking liquidity & competition
2. Best practice risk management
3. Seriously cutting down on tax haven use
Brexit ironically may have helped accelerate this process as dominant player UK no longer involved.
8/
Now official:
"EU Commission today adopted an equivalence decision determining the SEC regime is equivalent to EU rules"...to obtain this "a 3rd country regime has to fulfil conditions laid down in the European Market Infrastructure Regulation (EMIR)". https://ec.europa.eu/commission/presscorner/detail/en/ip_21_205?cookies=disabled
Now official:
"EU Commission today adopted an equivalence decision determining the SEC regime is equivalent to EU rules"...to obtain this "a 3rd country regime has to fulfil conditions laid down in the European Market Infrastructure Regulation (EMIR)". https://ec.europa.eu/commission/presscorner/detail/en/ip_21_205?cookies=disabled
