World / Europe EU unveils new Brexit rules denying London’s right to host euro clearing houses BL PREMIUM

Brussels — The EU fired a fresh salvo at Britain on Thursday, proposing fresh rules that would require a huge slice of London’s banking business to leave the UK after Brexit. The new rules, unveiled by European Commission vice-president Valdis Dombrovskis, would deny London the right to host banking "clearing houses" that deal in euros, the EU’s single currency. Clearing houses are a key part of the financial system’s plumbing, with trillions of euros being handled every year, mostly out of London. Dombrovskis said the EU will officially publish its new proposals in June, with Britain accepting Brussels’s oversight of euro-clearing in London the only other option on the table. "This is not a new issue, but of course, in a context of Brexit, we see the situation is changing," Dombrovskis told reporters. "Because the bulk of euro-denominated derivatives are cleared in the UK ... we need to assess what implications it has for financial stability." The issue of whether euro clearing hou...