Dombret warns clearing and securities depository business may leave London
Bundesbank’s Dombret said London’s pull as venue for euro trading would “shrivel” if UK voted to leave
Speaking on June 23, the day of the UK's vote to leave the EU, Deutsche Bundesbank's executive board member, Andreas Dombret, warned that should the Brexit take place, euro trading and clearing business and central securities depository services will leave the UK.
Dombret warned "London's pulling power as a venue for European bond and forex trading would shrivel".
He noted supervisors already took a "critical view" of trading taking place outside the eurozone. He could "barely imagine" a scenario where they tolerated it taking place outside the EU as well, he said.
Discussing the potential ramifications of a vote to leave, he noted the European Banking Authority (EBA) – based in London – would have to "find a new home" and "rebuild the prudential co-operation with the UK from scratch".
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