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The move would be a significant boost for the city after Brexit and a major blow to French President Emmanuel Macron, who has tried to lure global banks out of the city. In June this year, Macron invited an elite group of global bank chiefs such as JP Morgan boss Jamie Dimon and David Solomon from Goldman Sachs to a “Choose France†event to promote investments in his country.
This happened when the UK still had very restrictive quarantine measures due to the pandemic.
According to the Telegraph, executives were becoming increasingly frustrated with the rules.
Speaking to Bloomberg TV, London stock exchange chief David Schwimmer said this week: “My expectation is that the European Commission will find a way to continue providing access to EU member banks and other institutions [London clearing houses].
“It is clearly recognized that it is an extremely important service for the EU institutions that use it, so it would be bad for them to be cut off from it.
“We will continue to exchange ideas with the various stakeholders.
“I assume we’ll probably see something early in the new year.”
The move marks a major Brexit victory, as the finance chiefs warned before the referendum that the eviction – along with more than 200,000 jobs in the city – would be collateral damage if we left the EU.
However, there has been no mass exodus of financial jobs from London.
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According to EY’s Brexit tracker, only around 7,500 jobs and £ 1.2 trillion in assets have left the city since the UK voted to leave the EU in 2016.
The number is well below the projections suggested by Xavier Rolet, former London Stock Exchange chairman, who claimed more than 230,000 jobs could be lost.
JP Morgan, whose CEO previously claimed Brexit could result in the loss of 4,000 UK jobs, will have moved fewer than 400 by the end of this year, while Morgan Stanley has only moved 150 jobs.
Mr Schwimmer’s comments came just weeks after EU financial services chief Mairead McGuinness promised that there would be “no cliffs” in EU banks’ access to UK clearinghouses, which act as middlemen in trade and play a vital role in financial stability. will give.
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She said the Commission would “not make sudden twists and turns” in any decision on the license that will allow European banks to do billions of euros in business in London.
A clearinghouse is an intermediary between buyers and sellers of financial instruments.
It is an agency or separate company of a futures exchange that is responsible for handling trading accounts, clearing trades, collecting and managing margin funds, regulating delivery and reporting trading data.
The UK clearinghouses were given permission to operate temporarily in the EU until June 2022 in order to ensure financial stability after Brexit.
President Macron’s relationship with Britain has been increasingly bumpy in recent weeks due to the fisheries dispute that has dominated British-French relations.
However, Macron showed signs of weakening when he withdrew the threat of sanctions against the UK he had issued in response to the lack of fishing licenses for French fishermen.
He said: “As of this afternoon, discussions have resumed on the basis of a proposal I made to Prime Minister Johnson. The talks must continue.
“I understand that the British would come back to us tomorrow with different proposals.
“All of this is being worked on. We’ll see where we are at the end of the day tomorrow to see if things have really changed.
“My wish is that we find a way out of all these questions.”
