NEW: Draft #EU plan to maintain access to #UK clearing houses after #Brexit. @EU_Commission decision will safeguard #EU banks' access to LCH etc for 18 months to June 30, 2022: https://www.ft.com/content/2de23b12-5f77-44db-8e29-c3999491b2e7. A short thread: 1/

The plans reflect LCH's dominance in clearing euro-denominated derivatives, and stave off financial stability risks at the end of the #Brexit transition period. Both #ECB and #BOE have warned of this: 2/

But the @commission is also clear that it sees the 18-months as a breathing space to deal with that problem by building up the #EU's own clearing capacity and reducing reliance on London: 3/

The #EU's already adopted legislation to drive this process: the amazingly clunkily titled EMIR2.2 law. Adopted last year, EMIR2.2 seeks to boost #EU oversight of non-EU clearinghouses, and hands regulators powers to pressure them to move activities into the EU 4/

But all that is for the future, and for now the #EU is massively reliant on #London. Hence the need for the 18-month window: 5/

National governments are reviewing the @EU_Commission proposal, which is set to be adopted before the end of the month. ENDS