UK authorities have begun to hit back at controversial proposals that would require systemically important clearing houses to sit within the eurozone, under the supervision of the European Central Bank and potentially weaken the position of UK-based clearing providers.

In response to the de Larosière report on EU financial market supervision, the UK Treasury has insisted that any rules governing clearing and settlement must reinforce the EU-wide Single Market. The Turner report on reforming financial regulation, which is published today, is also expected to touch on the issue, Financial News has learnt.