Brexit “will bring 150 billion euros to France by the end of the year” – EURACTIV.fr

Financial firms will move around 150 billion euros from Britain to France by the end of the year, at the end of Britain’s post-Brexit transition period, the head of the EU said Wednesday (October 7th). Bank of France.The ‘rapid’ flow across the Channel includes both French groups moving assets from UK branches and movements of 43 UK-based entities ‘to ensure they can continue to trade in France’ , said François Villeroy de Galhau at a banking event in Paris.

31 other financial players, “mainly investment companies”, have applied to register in France and their applications are being examined by the ACPR, market watch, he added.

But there are “a handful of small businesses” left, particularly in payment services, electronic treasury and investments, who “need to speed up the process immediately to avoid being caught off guard in January,” Villeroy said.

Villeroy also warned that a temporary solution allowing European financial markets to continue using London’s clearinghouses – which hedge both buyers and sellers against the risk of a trade failure – could not last forever. .

“It would not be a winning bet to bet on the status quo given the size and concentration of some clearing services,” he said.

“It is a top priority to address the risks to financial stability of over-reliance on clearing houses in the UK.”

Nevertheless, an “attractive compensation offer” on the continent is necessary to “support the emergence of a new” pool “of liquidity,” added the central banker.