FirstFT: Brussels demands share of derivatives clearing in London


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The EU will require derivatives traders to use accounts at the bloc’s clearing houses for some of their trades as part of plans to take a slice of the 115 billion euro market handled by the City of London.

Banks processing large amounts of contracts that regulators deem “systemic” will have to clear a minimum amount of business using active accounts at EU-based clearinghouses, officials briefed on the proposals said.

The plans are part of a package aimed at boosting European capital markets and reducing reliance on the UK financial services sector after Brexit. The European Commission plans to present the measures next month when it publishes proposals.

“It is a very active policy in the EU to repatriate companies to the euro zone. They want to have control over where it happens” — Karel Lannoo, managing director of the European think tank CEPS

Most interest rate swaps around the world are transacted in London at clearing houses that have not moved since Brexit. EU politicians are unhappy that euro-denominated derivatives are traded in a market that is beyond the direct oversight of their regulators.

What is your reaction to the plans? let me know at [email protected]. Thank you for reading FirstFT Europe/Africa. — Jennifer

1. British businesses and unions denounce EU rules Prime Minister Rishi Sunak is under pressure from an alliance of business, legal, labor and environmental groups to drop plans to automatically drop EU-derived laws from the UK lawbook by the end of the year next. Brexiters argued the process would bring a “productivity boost” to the UK economy.

Thank you to everyone who participated in yesterday’s survey. Fifty-nine percent of respondents agreed that the The EU’s plan to cap gas prices Avoiding a repeat of soaring energy costs was “a joke with no ceiling”.

2. Most Fed officials back slower rate hikes “soon” A ‘substantial majority’ of US Federal Reserve officials are back to slow the pace of interest rate hikes, while some have warned of a bigger-than-expected tightening of monetary policy next year , according to a report of their last meeting. In US and European stock markets, some of the world’s biggest asset managers remain unconvinced that the recent rally will last.

3. Disney awarded Iger a $10 million consulting deal to advise the CEO Bob Iger was given a $10 million contract to advise his successor Bob Chapek, even though the two executives were barely on good terms. Iger returned to Disney this week as chief executive after his chosen heir, Chapek, was ousted in an internal revolt.

4. Whole swaths of Ukraine without electricity Russia fired dozens of missiles yesterday, leaving large swaths of the country and more than half of neighboring Moldova without power, in Moscow’s latest attempt to cripple civilian infrastructure.

5. Yandex seeks Vladimir Putin’s approval for restructuring The company often described as “Russia’s Google” is seeking the president’s blessing to sell its operations in the country, take care of its major international projects and appoint a longtime Putin confidant to handle its relations with the Kremlin.

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The day ahead

UK postal strike The walkout on working conditions will be the first of several in the run-up to Christmas. The Communication Workers Union claimed last week that Royal Mail had pulled out of negotiations after presenting staff with a ‘take it or leave it’ proposal.

Central banks The Swedish Riksbank announces its latest interest rate decision. Analysts predict that soaring inflation will push policymakers to take a more hawkish stance; ING predicted an increase of 75 basis points, with a last increase of 50 basis points in February. In addition, the European Central Bank publishes a report of its last monetary policy meeting. South Africa is also holding its monthly rate-setting meeting, while in Turkey policymakers are expected to continue their string of rate cuts.

business profits Ingka Group, which owns most of the Ikea stores globally, releases figures for the full year, including the furniture retailer’s profit. Other reporting companies include Dr Martens, Jet2 and Remy Cointreau, while Kingfisher provides a third quarter trading update.

world Cup Brazil kick off against Serbia. Neymar, 30, could have his last chance to win Brazil’s sixth World Cup. He previously posted an Instagram photo of the country’s coat of arms bearing the sixth star. Switzerland also face Cameroon, while Uruguay take on South Korea.

Neymar

At 30, Neymar is a different footballer from the poor kid from the port city of Santos who emerged around ten years ago © FT montage; AFP/Getty

Thanksgiving US stock and bond markets are closed for the national holiday, which is normally plagued by travel chaos and traffic congestion. This year, more than 54 million people are estimated to travel 50 miles or more to visit loved ones, according to the AAA. (CNN)

What else we read

How magical thinking enabled the rise – and fall – of FTX Since the cryptocurrency exchange imploded this month, it has become clear that the concentration of power, coupled with a lack of oversight, has caused massive customer losses because funds have been funneled without accountability. . Gillian Tett reflects on the deep contradictions in the industry.

How to bet £600m of public money If your job is to maximize the amount of money that goes to good causes, betting hundreds of millions of pounds on the chance that you might return a little more over 10 years seems risky. That’s what the UK’s Gambling Commission did when it rejected national lottery operator Camelot’s request for a new license, writes Cat Rutter Pooley. But maybe it wasn’t a bad bet after all.

The contest on the future of the Catholic Church The question of who will replace Pope Francis, who turns 86 next month, looms. The pontiff is not the darling of progressive Catholics, for whom his approach to issues such as homosexuality is too cautious. Yet he is considered more reformist. Tony Barber asks, what does the future hold for the Church?

Irish millionaire homeowners belie the chasm of inequality Who Wants to Be a Millionaire? In Ireland, where household net worth is at an all-time high, one in eight households already is, at least on paper. Housing accounts for a large part of this increase for the top 10%. This means that it becomes difficult for the next generation to own a house. Jude Webber explores.

How to disagree with your boss Last week, Elon Musk reportedly fired a dozen engineers after openly opposing him. This is an extreme example of what can happen when you disagree with your boss. You will almost certainly be at odds with your manager at some point in your career. This week’s Working It newsletter explains how you should let them know.

Travel

Guyana is considered the next hotspot for travelers seeking adventure. But deep in the jungle, just above a thundering waterfall in a sinking boat, Jamie Lafferty got more than he bargained for.

The view from the top of Kamarang Falls

The view from the top of Kamarang Falls © Jamie Lafferty

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