September Is Key Date for Brexit Progress, Finance Lobby Says

September Is Key Date for Brexit Progress, Finance Lobby Says

Bloomberg  | Jul 06, 2020 00:36

September Is Key Date for Brexit Progress, Finance Lobby Says

(Bloomberg) -- The finance industry is ramping up pressure on the European Union to ensure access to London financial markets, warning of major disruptions without progress toward a Brexit trade deal by the end of September.

The third-quarter date -- as opposed to the official year-end deadline for an agreement -- is crucial because that’s when U.K. derivatives clearinghouses, such as the one run by London Stock Exchange Group (LON:LSE) Plc, would need to start closing out European firms’ membership, the Association for Financial Markets in Europe said in a statement.

“In practical terms, three months may not be sufficient time for the larger clearing members to close out their positions and make alternative arrangements,” according to the AFME, one of the region’s biggest lobbying groups for banks, and brokers. “Even if feasible, this would involve significant risks to market and financial stability.”

The most recent round of Brexit talks broke up without much sign of progress. The EU’s chief Brexit negotiator also last week blasted the U.K.’s plans for post-Brexit finance, calling them “unacceptable.”

©2020 Bloomberg L.P.

© Bloomberg. An umbrella featuring the design of the Union flag, also known as the Union Jack, stands near European Union (EU) flags outside the Houses of Parliment in London, U.K., on Tuesday, Oct. 22, 2019. U.K. Prime Minister Boris Johnson will find out Tuesday evening whether he has any chance of getting his Brexit deal through Parliament -- and whether he can do it ahead of his Oct. 31 deadline. Photographer: Chris J. Ratcliffe/Bloomberg

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