What the Reddit investors are doing is technically not against the law but the coordinated buying could at worst be considered market manipulation. The rally extended into silver as day trader set their sights on the precious metal, which reached an eight-year high on Monday. On Tuesday Gamestop shares plunged more than 60 per cent before clawing back some of its losses on Wednesday, closing at $92.41. This paper takes stock of the ongoing debate and how it relates to the functioning of CCPs. This seems to be neglected in a lot of the current policy debates. There exists an important trade-off with regard to shifting locations that need to be at the forefront of the discussions and the negotiations when dealing with Brexit. At the same time, it is to be expected that such a development will have a significant impact on the financial infrastructure of the City of London. Shifting locations and oversight of CCPs as a result of Brexit could lead to the establishment of a large financial centre within the EU-27. Furthermore, the European regulatory framework currently faces certain weaknesses, obstructing the regulatory potential of the EU.Īs the Brexit negotiations are not yet finished, this paper does not intend to set out a definite outcome of the processes currently taking place. However, localizing euro-denominated transactions in Europe could potentially give rise to efficiency losses and a higher risk for companies and investors. The development of a EU27 financial hub and the possibility to increase oversight over euro-denominated financial transactions, which were partly at the roots of the financial and Eurozone crisis, could strengthen the market shaping of European financial markets. It studies the relevant materials, as they relate to the functioning of Central Counterparty Clearing in the aftermath of Brexit, with specific attention to the potential shift of locations and oversight. This paper provides an economic, political and legal investigation based on desk research. investigate the impact of moving euro-clearing to the EU27. Prior to Brexit, the City of London had a dominant position in euro-clearing, but in the aftermath of Brexit, clearing houses might decide to move to the EU27. This paper investigates the impact of moving Central Counterparty Clearing Houses (CCPs) that clear euro-denominated transactions to the Eurozone after the withdrawal of the UK from the European Union.
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