Sionic Partner Christian Lee is among the first to comment on the news that the EU plans to extend the temporary permits that allow banks, brokers and fund managers to continue to use UK clearing houses by three years, until June 2025. The announcement was made by EU Commissioner Mairead McGuinness, whose portfolio covers financial services, financial stability and capital markets.
Christian Lee, who has an international reputation as an expert in clearing, commented:
“This is a significant boost to the City and LCH in particular. The risk of market disruption has clearly influenced this decision and the status quo for OTC clearing is being maintained.
Nevertheless the concerns major buy and sell side participants have regarding concentration of risk means that alternative EU based solutions will co-exist with LCH.”