ECB wants extra shield if it is to supervise clearing houses

European Central Bank announces interest rate decision in Frankfurt
A logo plate is seen at the entrance to the European Central Bank (ECB) headquarters in Frankfurt, Germany, October 26, 2017. REUTERS/Kai Pfaffenbach

November 10, 2017

FRANKFURT (Reuters) – The European Central Bank is happy to start supervising clearing houses in the wake of Brexit but is keen to ensure this does not interfere with its monetary policy, an ECB director said on Friday.

“We strongly welcome the intention of the legislator to give central banks of issue a role in the regulatory framework for CCPs (central clearing counterparties),” Yves Mersch told an audience in Windsor, Britain.

“At the same time, the involvement of the central bank in the regulatory framework should not put into question either its independence or its discretion to define the scope of its monetary policy.”

The ECB’s top supervisor, Daniele Nouy, said a day earlier she would rather leaving the oversight of clearing houses, middlemen between buyers and sellers of securities, to the European Securities and Markets Authority.

With 90 percent of euro derivatives cleared in London, European regulators are keen to ensure they keep their grip on clearing houses, middlemen between buyers and sellers of securities, even after Britain leaves the European Union.

(Reporting By Francesco Canepa; Editing by Balazs Koranyi)