City watchdog chief takes swipe at Brussels over euro clearing
City watchdog chief Andrew Bailey has taken an apparent swipe at EU “mercantilists” seeking a euro clearing land grab after Brexit.
Speaking at the Mansion House City Banquet last night, the FCA chief executive said he was an “unashamed free trader” as he criticised those he said were “prepared to sacrifice the principles of open markets.”
Some EU policymakers have called for euro-denominated clearing to be moved away from London and into the Eurozone after Brexit.
“The key point for me here is that we – whether it be the UK authorities, EU, US or anyone else for that matter – should avoid a world where we regard it as normal to tell our market participants, corporate treasurers etc where they cannot and therefore can do business,” he said.
“I am an unashamed free trader”, he added.
Earlier this month the EU's financial watchdog, the European Securities and Markets Authority (ESMA), said the bloc's banks needed access to London's clearing houses to avert the potential turmoil of a no-deal Brexit.
Under current rules the London Stock Exchange's LCH, which clears around 90 per cent of euro-denominated contracts, would only be able to apply for EU authorisation as a foreign clearing house once Britain has officially left the EU.
But ESMA's comments suggest such an authorisation may be obtainable and could even be fast-tracked as 29 March approaches.
Meanwhile, Bailey also revealed last night that the FCA had told banks they should only move activity out of the UK if it's in the interest of their customers.