London Banks Fear Loss of Euro Derivatives Clearing

The video discusses the potential relocation of euro derivatives clearing from London due to Brexit. It explores the challenges and implications for financial services, including job relocations and the impact on London's financial health. The discussion highlights the complexity of moving financial operations and the potential for other cities, like New York, to benefit.

What is the main concern for banks regarding the clearing of euro derivatives post-Brexit?

• The potential increase in taxes

• The movement of operations outside London

• The rise in interest rates

• The introduction of new currencies

What are some of the challenges mentioned in moving the clearing operations?

• Lack of skilled personnel

• Technological and contractual difficulties

• High transportation costs

• Political instability

Why might New York or other jurisdictions benefit from the changes in euro derivatives clearing?

• They could become new financial hubs

• They have better weather conditions

• They offer higher salaries

• They have more cultural attractions

What is a potential consequence of making it difficult for the City of London post-Brexit?

• The UK will rejoin the EU

• The euro will become the dominant currency

• Jobs may move to non-European financial centers

• The EU will gain more control

Approximately how many jobs are estimated to be affected by the changes in euro derivatives clearing?

• Tens of thousands

• A few hundred

• None

• Several thousand