Financial regulation in Britain and Europe will diverge and the European Union will need to amend its arrangements for market access, Mark Carney and one of his deputies at the Bank of England said as they laid down the gauntlet for Brexit negotiations. Sir Jon Cunliffe, the Bank’s deputy governor for financial stability, said that the size of the City’s markets made them too important “to outsource regulation” to Brussels. “There may well be divergence,” he said. Mr Carney, the governor, warned that the EU’s regime for non-member countries “was relatively unstable, can be withdrawn on short notice” and that “at the minimum there would need to be an amendment” for derivatives clearing. Britain and Brussels are squaring up for a battle over financial market Continue reading