BRUSSELS: A battle that threatens London’s dominance in the derivatives market is rearing its head, with European firms at risk of being blocked from using clearinghouses in the British capital within six months.
Industry groups fear that contingency measures already agreed by Brussels officials to grant access until the end of March 2020 don’t defuse the threat posed if the political storm in Westminster pushes the U.K. out of the bloc without a deal on Oct. 31. At risk are derivatives contracts with a notional value of tens of trillions of dollars.