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LONDON (Reuters) – Tens of thousands of jobs in Britain’s financial services sector could be lost if euro clearing shifts to continental Europe and full access to the bloc’s single market is lost, top industry officials said on Tuesday.
London has become the world’s biggest center for clearing euro-denominated financial contracts, and some continental policymakers want this shifted to the euro zone after Brexit.
Rolet - Executive - London - Stock - Exchange
Xavier Rolet, chief executive of the London Stock Exchange Group , owner of the world’s biggest clearing house for euro-denominated contracts, said that without clarity on what happens to markets after Brexit, clearing customers in London will leave.
Some tens of thousands of jobs could leave London, not just from clearing itself, but also from ancillary services like software and IT, risk management, and administrative staff, Rolet told parliament’s Treasury Select Committee.
Customers - London - Britain - Divorce - Talks
To avoid customers quitting London when Britain begins formal divorce talks with the EU in March, existing rules should stay in place until 2022 to avoid disruptions that could undermine financial stability, Rolet said.
Already, banks with large London operations say they will step up lobbying European officials because they are running out of arguments to convince the British government the industry needs single market access.
Douglas - Flint - Chairman - HSBC - Bank
Douglas Flint, chairman of HSBC bank , told the lawmakers that banks without operations elsewhere in the EU will likely trigger migration plans immediately after EU divorce talks begin in March, estimating that “tens of thousands” of jobs are linked to EU “passporting” rights.
Currently, banks have passporting rights, allowing them to operate across the 28-nation bloc from a base in Britain. They could lose this right under Brexit.
Job - Losses - Banking - Lenders - Britain
Possible job losses in banking would depend on how lenders in Britain negotiate new licenses with regulators on the continent, raising question...
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