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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June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.