LONDON (Reuters) – The European Union is assessing how much access it will grant Britain’s huge financial sector from January.

The following are details on how different areas of finance will be affected.

BANKING

Foreign banks are not allowed to directly offer loans or deposits to customers in the EU, and must have a branch or subsidiary in the bloc.

Banks in the UK and EU are waiting to see if they will have to hold capital against exposures to sovereign debt from each other’s jurisdictions from January, which would have major implications on the location of their operations.

DERIVATIVES

The London Stock Exchange clears over 90% of euro denominated interest rate swaps and the EU has said it will grant temporary permission for this to continue from January.

It is unclear whether EU investors can still trade interest rate and credit default swaps in London from January or will have to use a platform in the bloc.

ASSET MANAGEMENT

EU and UK regulators have agreed on supervisory cooperation that will allow asset managers in Britain to continue running portfolios of funds based in the bloc, known as delegation.

CREDIT RATING AGENCIES

Moody’s, S&P and Fitch will be allowed to continue using London-based analysts to rate EU companies and their issuance, but the bulk of EU ratings will be done in future by analysts based in the bloc where the Big Three have operations already.

INVESTMENT SERVICES

Brussels has said that in the short to medium term, it will not allow banks and brokers in London to undertake securities transactions like bloc and derivatives trades for fund managers and other institutional customers in the EU, putting pressure on banks to move more staff to the EU.

SHARES

London-based cross-border trading platforms Aquis, Turquoise and Cboe are waiting to see if Brussels will allow them to continue trading EU listed shares from January. Otherwise, all three will use new hubs in the bloc for trading EU company shares, splitting markets.

BONDS

Trading in euro-denominated corporate and sovereign bonds has already moved from London to operations in the euro zone. Clearing of euro-denominated bond trades has also moved from London to Paris.

INSURANCE

Direct access for insurers and reinsurers from Britain is only possible for certain areas like reinsurance contracts, prompting insurers to open hubs in the EU. The Lloyd’s of London insurance market has set up a new unit in Brussels. Some domestic UK insurers don’t want access to the EU so that Britain can amend rules inherited from the EU.

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