Industry bodies urge EU to ditch euro clearing relocation plan

Leading users of derivatives markets in the European Union called on the bloc on Thursday to scrap a plan that would force them to shift euro derivatives clearing from London to the EU. The EU has long been irked by the dominance of the London Stock Exchange Group (LSEG) in the clearing of euro-denominated interest rate swaps, a contract widely used by companies to hedge against moves in borrowing costs. Its executive European Commission has proposed a draft law that would require banks and asset managers in the EU to have an active account with a clearer based in the bloc – in practice Deutsche Boerse's Eurex Clearing in Frankfurt – to shift business from LSEG to Eurex.