The European Union is dialing back a threat to force major clearinghouses in London to relocate to continental Europe after Brexit, in a move that could cool a lengthy, politically charged battle over a jewel in the City of London’s crown.
But while the U.K. may be happier, the shift is unlikely to assuage U.S. regulators. They have waded into the debate in recent months, warning that the EU’s proposals to increase its control over the clearing of euro-denominated securities and derivatives would impose new costs and burdens...