The EU is making a move on London's euro-clearing market, and has been putting together proposals to corner UK businesses into relocating or submitting to regulation from Europe.
The European Commission plans to put out legislative proposals in June affecting London's clearing businesses, the Financial Times has reported.
Both France and Germany have previously suggested Brexit will curb London's dominance in euro-clearing, and now it appears the bloc is moving ahead with plans to impose restrictions on UK firms.
A draft policy document proposes "more centralisation of supervision" of clearing businesses in the EU if they provide "critical capital market functions", according to the FT. In addition, Brexit will have a "significant impact" on oversight because Britain will have a substantial power in the markets, but will be outside the EU's regulatory reach.
For non-EU firms, there will be arrangements based on "objective criteria" to make sure that any external clearing markets playing a significant role in the EU's financial markets are subjected to EU oversight.
"This includes, where necessary, direct supervision at EU level [and/or] location requirements," the paper said.