The EU’s latest battle with Britain concerns interest-rate swaps — a financial transaction used by fund managers, insurers, pension funds and banks to protect themselves against unexpected changes in the cost of borrowing.
These swaps are “cleared” — that is, monitored and managed — through clearinghouses like LCH in London, by far the major player in the industry. The clearinghouse becomes the buyer to the seller, and vice versa, to guarantee a trade.
Read more at:
EU wrestles for control of euro clearing after Brexit – POLITICO
