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

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.