EU high court says that euro clearing houses can still be based in City without relocation

Industries Associated Press

A European Union high court has handed Britain and its London financial hub a victory by ruling against a European Central Bank decision that would have forced financial institutions clearing trades in euros to be based in the eurozone.

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So-called clearing houses ensure financial contracts such as futures are honored, reducing risk for traders.

In its role as financial overseer, the ECB wanted to make clearing houses that mainly process trades denominated in euros to be based in one of the 19 euro states. On Wednesday, the General Court annulled the policy.

Britain is part of the EU but doesn't use the euro. London is Europe's predominant financial center and the ECB's proposal could have eroded its position and cost thousands of jobs.

Britain called the decision "a major win."