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Report: EU to allow 1-year access to UK clearing houses in no-deal Brexit

The European Union will allow derivatives traders to access U.K. clearing houses in the event of a no-deal Brexit, the Financial Times reported.

EU states agreed that so-called equivalence rights should be given to companies for the period of a year, starting "day one" of Brexit, to give them time to adapt to the changes that may come with the move, the Dec. 12 report said.

British clearing houses will need to be cleared by the European Securities and Markets Authority, the FT said.

The European Commission is expected to confirm the plan Dec. 19.

The report runs contrary to the EC's previous stance, which set out plans for increased regulation of the clearing of euro-denominated derivatives in the U.K., including giving itself the power to force the biggest clearing houses to operate from within the EU.

U.K.-based clearing houses such as LCH Group Holdings Ltd. and ICE Clear Europe Ltd. handle the majority of the trillion-euro European swaps and futures clearing.