After its attempts to shift more clearing activity away from London’s dominant LCH and ICE Clear Europe to European clearinghouses fell flat, Brussels extended its recognition of U.K. clearinghouses to 2028 in a fast-tracked process which has caused political drama in the EU capital.
Although British officials are pleased to have some relief from a looming mid-2025 deadline, they’re not happy that the 2028 date has, in the words of one U.K. official, “just created another cliff-edge” which will need to be re-negotiated in a few short years.
Happily ever after
On both sides of the Channel, politicians are desperately trying to prove to voters that they can grow their respective economies — with Reeves and her Prime Minister Keir Starmer even using Britain’s sluggish growth as a stick to whack the watchdogs with, and each side more intent on protecting their own industries from possible Trump tariffs.
So despite potential cracks in the relationship, the regulators have more in common than do their political masters: Both are more focused on financial stability than on “competitiveness,” despite political leanings toward the latter, the senior EU official said.
“We’re not Pollyanna. We know this is going to be a long road, but are we seeing a small movement in terms of positive and constructive engagement? I think we can say yes,” said one City lobbyist, granted anonymity to speak freely.
Meanwhile, another City of London lobbyist argued that Wednesday’s meeting will be a chance to air any grievances.