It was one of London’s biggest European court victories. Last year, the British capital dodged a bullet when the European Court of Justice stopped banks from having to transfer jobs to the euro zone for a vital part of their business.
The judges ruled that large transactions in euro-denominated securities didn’t have to be handled within the euro zone, as the European Central Bank has demanded, even though Britain has never joined the 18-nation currency bloc.
Under the ruling, so-called “euro clearing” — an extremely important market for Europe’s financial capital — was allowed to remain in London.
The ruling’s logic was simple: Being a member of the European Union was enough for London to keep its place as a European financial capital. The ECB was overstepping its authority by forcing a shift.
With Brexit, all bets are off.