EU clearing autonomy provision seen as ‘import tax’

The trade clearing industry generally likes the EU market trading rules’ proposed update, but it has much less enthusiasm about a provision based on the polity’s plan to take back control of EU trading in the post-Brexit context. Experts at an Efama event said it will increase costs, pose operational challenges and disrupt the practice of ‘block trading’, with one labelling it as an “import tax” forcing the market to “import liquidity”.