The UK clearing houses are still allowed to conduct trades for customers in the European Union (EU).

The EU will extend the exemption valid until June 2022, said EU Commissioner Mairead McGuinness on Wednesday.

Financial institutions in continental Europe need more time to build up more securities settlement capacity.

How long the deadline should be extended, she did not say.

Associations of European banks and fund companies had asked the EU Commission to extend access to British clearing houses.

Otherwise, market disruptions cannot be ruled out.

Brexit - Great Britain's exit from the EU - made new regulations necessary.

After Brexit, the EU granted securities clearers in London an exceptional permit.

However, this expires in June 2022.

A large part of the clearing for euro securities is to be transferred from the London Stock Exchange (LSE) to the Deutsche Börse in Frankfurt.