A new EU law could push derivative clearinghouses out of London and onto the continent after Brexit – a flight that might “destabilize” the UK capital as a world clearing center, US Commodity Futures Trading Commission chief Christopher Giancarlo said.
“That’s something that would work its way all the way into the real economy,” he told the House Agriculture subcommittee on commodity exchanges last week. “We will have a concern as to the migration of that business because American financial institutions play such an outsized role in those markets.”
Giancarlo said he has alerted other top US financial regulators at the US Financial Stability Oversight Council, headed by Treasury Secretary Steven Mnuchin, of his concerns about the “destabilization of London.”
CFTC's Giancarlo warns of 'destabilization' of London as derivatives clearing center
7 May 2019 8:08pm