City faces fresh post-Brexit blow as EU moves to restrict certain trades

Battle focuses on what EU sees as bloc's over-reliance on London's clearing houses handling euro-denominated derivatives

The City of London faces another post-Brexit blow to its dominance after the EU moved to require firms to settle more financial-risk reducing trades within the bloc.

The plan centres on trades in securities known as derivatives, and on financial market clearing houses, the intermediaries that enable the transfer of funds to sellers and financial products to buyers. Handling trillions of transactions each year, they are deemed an essential part of financial market plumbing that reduces risk.