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Imminent EU court ruling has implications for London and beyond 

March 4, 2015

Huw Jones, Reuters 

A top European court hands down a ruling on Wednesday that could have implications way beyond the obscure financial activities to which it directly relates, potentially ushering in a two-track EU with Britain and other non-euro zone countries out on a limb.

Britain has challenged a European Central Bank policy of requiring the "clearing houses" which help process trades in billions of euros worth of euro-denominated assets to be based within the single currency area.

The ECB believes this would make it easier to intervene if a clearer got into trouble.

But some lawyers say that if Britain loses the case at the General Court, part of the European Court of Justice in Luxembourg, the ramifications could be felt far beyond the arcane plumbing of financial markets, where clearing houses guarantee the completion of a stock or bond trade.

Read More: Reuters 

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