European banks will still be able to use derivativesclearinghouses in London if the Brexit negotiations run deep intonext year, according to the bloc's top financial-servicespolicymaker.

The finance industry has warned of an exodus asearly as next month unless the European Union (EU) grants anextension. A previous arrangement to allow trading clients in thebloc to clear transactions in the U.K., known as "equivalence," isdue to expire in March.

"Regrettably, the risk to financial stability has not yet beenfully removed because industry has not so far fully prepared for ano-deal Brexit," Valdis Dombrovskis, the EU's commissioner incharge of financial services, said in a speech in London."Therefore, I intend to propose to renew this time-limitedequivalence decision beyond that date, to prepare for anyeventuality."