To ask the Chancellor of the Exchequer, with reference to the White Paper, The Future Relationship Between the United Kingdom and the European Union, published in July 2018, what assessment he has made of the effect of the policies set out in that White Paper on transactions in euro-denominated assets for the UK financial sector.
To ask the Chancellor of the Exchequer, with reference to the White Paper, The Future Relationship Between the United Kingdom and the European Union, published in July 2018, what assessment he has made of the effect of policies set out in that White Paper on derivatives clearing for the UK financial sector.
Derivatives clearing is an integral part of the UK financial system and the financial stability of both the UK and the EU. This includes euro-denominated clearing, which forms an important part of the overall financial structure in London, generating economic efficiencies from which many firms in the UK, in Europe and internationally benefit.
We aim to ensure that we avoid outcomes that impose unnecessary costs and disruption on individuals and businesses as the UK leaves the EU. We have been clear that equivalence, as it currently stands, will not work for the UK, and will not work for the EU.
As set out in the White Paper, the UK is seeking a future UK-EU relationship which recognises the autonomy of each party over decisions regarding access to its market. Importantly, it also includes a bilateral component which would create shared commitments for the governance of the relationship, establish extensive supervisory and regulatory cooperation, as well as robust and transparent processes. This includes appropriate timelines and notice-periods if market access was to be withdrawn.
The effect of the agreement would be stability for the UK-EU financial ecosystem and the continuation of economically valuable financial services under a new balance of rights and obligations.