U.S. Markets

LSE CEO says expects EU to extend 'equivalence' for euro clearing beyond March 2020

LONDON (Reuters) - The European Union is expected to allow EU customers to continue using the London Stock Exchange’s derivatives clearing house beyond next March if there is a ‘no deal’ Brexit, the company’s chief executive David Schwimmer said on Thursday.

Temporary EU permission, known as equivalence, is due to expire next March, raising the prospect of EU customers having to shift positions from London at considerable cost.

“We have a strong expectation that there will be a technical extension granted,” Schwimmer told a derivatives conference.

Such an extension would probably stretch to later in 2020 by when the LSE expects to secure permanent equivalence-based access, Schwimmer said.

Reporting By Huw Jones, editing by Sinead Cruise