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

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.