EC could use thresholds to squeeze London euro clearing

Most euro clearing could be repatriated after Brexit without hitting other jurisdictions

Under threat: about 67% of all euro-denominated derivatives transactions are executed in the UK

Attempts to relocate euro-denominated derivatives clearing from the UK after Brexit will hinge on the imposition of thresholds that penalise London, but are not high enough to capture other jurisdictions, such as the US and Hong Kong, lawyers say.

Five industry sources, including lawyers, regulatory experts and a market infrastructure provider, report the measure is being discussed by European legislators – one being the European Commission – as a means to limit the potential fallout from a