European Central Bank (ECB) planning to prohibit trading with Euro denominated assets outside Euro zone. Big clearing houses will move to Frankfurt due to the regulation and City will become empty. The effort is obvious that the ECB can exercise greater oversight of the trading of euro-denominated assets and thus indirectly the over euro exchange rate. In addition to have more direct intervention possibility. Besides this common sense also dictates that the Euro trading center be the same like ECB headquarter.
In 1992 Great Britain had to leave Europen Exchange Rate Mechanism (ERM) and have been staying away from the European standardization of financial processes. That is the event when George Soros received the demolisher of British pound nick name. Staying away from Euro haven’t been significant disadvantageous to British production and to City until now. But it is obvious that England missed the benefits of the single currency. Therefore competitiveness inevitably reduces sooner or later.
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