The U.K. government has decided to take legal action against the European Central Bank (ECB) over proposed changes to European banking rules that could prevent clearing houses in the U.K. from dealing with euro-denominated financial products, according to reports.
The new policy will force all major clearing houses dealing with euro-denominated financial products to relocate to Eurozone, which may hurt the City of London and jeopardize its position as a major market in financial services, reports said.
The ECB policy requires clearing houses that handle more than 5 percent of the market in a euro-denominated financial product to be based in Eurozone.
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May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.