Proposal Targets London Finance -

Proposal Targets London Finance -
By CHAD BRAY and JAMES KANTERMAY 4, 2017
European Union officials fired an opening salvo on Thursday in a “Brexit”-related dispute
that could threaten London’s status as the undisputed financial capital of Europe and affect hundreds of trillions of dollars’ worth of financial products.
The negotiations over the financial sector are particularly vital for London — the ability to serve Europe-based clients
from London in the so-called single market has been a main driver of growth for Britain’s financial industry.
In the course of a series of proposed technical changes, the European Commission, the executive arm of the 28-nation bloc, hinted
that it may seek a more centralized role in supervising the complex financial contracts known as derivatives when they are denominated in euros.
Those rules, if enacted, could force clearing houses for derivatives to be regulated by European authorities even after
Britain leaves the bloc, or to relocate part of their operations in order to avoid losing business to competitors.
Her speech followed, among other things, a report in The Financial Times
that European officials were preparing to ask for a payment of up to 100 billion euros, or about $109 billion, from London to cover its financial commitments as part of its exit.