ECB Seeks New Powers to Deal With Clearing Crises Outside the EU
- Central bank wants to limit threat in ‘exceptional situations’
- Push comes after U.S., U.K. concerns over EU clearing plans
European Central Bank headquarters in Frankfurt.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
The European Central Bank is pushing Brussels policy makers for major new powers over clearinghouses in the U.S. and London post-Brexit, upping the stakes in a battle between global regulators on oversight of the multi-trillion-dollar market.
The ECB wants the ability to demand changes at a foreign clearinghouse during a future crisis, according to a paper from the central bank that was seen by Bloomberg News. For example, the ECB would be able to require a big clearinghouse in the U.S. or the U.K. after Brexit to collect more collateral from clients and increase its liquidity buffers.