Brexit Risks Taking Multi-Trillion Euro Trading from London

If Britons vote to leave the EU, London’s financial centre faces losing one of its top money spinners – the trade in trillions of euros in derivatives – and the European Central Bank will be pushing hard for the business to move onto its patch.

According to euro zone central bank officials, the ECB is determined to tackle an anomaly dating from 1999 when Britain opted out of the euro’s launch: a dominant share of trading in the currency it issues goes on outside its jurisdiction in London.

Euro zone officials are reluctant to discuss publicly such a sensitive issue – and the risk that London could lose out to rivals Frankfurt and Paris – before the June 23 referendum on a British exit from the European Union.

But Christian Noyer, a former ECB vice president and Bank of France governor, is free to make the case as he no longer holds a high office in the euro zone.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam

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