ECB Poised for Power Over Euro-Derivatives Clearing Post-Brexit
- European Parliament lawmakers advance ECB plan for oversight
- Clearing of euro financial contracts is dominated by London
A rower paddles on the River Main as the skyscraper headquarters of the European Central Bank stands beyond as the sun rises in Frankfurt.
Photographer: Jasper Juinen/Bloomberg
This article is for subscribers only.
The European Central Bank edged closer to gaining power over financial clearing, a lucrative business dominated by London and a flash point in the Brexit negotiations.
Lawmakers on a European Parliament committee on Tuesday endorsed a bill that amends the ECB’s governing statute, explicitly granting it authority over clearinghouses for euro-denominated contracts. This matters to the U.K. because the vast majority of interest-rate swaps in euros are cleared at a London unit of the London Stock Exchange Group Plc.