ECB executive member Mersch making a scheduled speech 10 NovSpeech entitled: Evolving regulatory environment for CCPs — the perspective of a Central Bank
Has a relevance re Brexit discussions and clearing practices but not price moving.
- I spoke of how the prospect of the UK’s exit from the EU creates uncertainty regarding the future of the regulatory and supervisory framework for non-euro area CCPs that clear significant amounts of euro currency.
- There have been very significant developments at EU level since I spoke about this topic last year.
- The most notable development has been the Commission’s proposal from June of this year to amend the EMIR framework for the supervision and regulation of EU and third country CCPs.
- We strongly welcome the proposals to strengthen the role played by the central banks of issue of the EU in the regulatory framework, as the authorities responsible for the implementation of monetary policy. This strengthening is necessary in light of two major trends of the past few years.
Mersch concludes:We strongly welcome the intention of the legislator to give central banks of issue a role in the regulatory framework for CCPs, commensurate with their responsibilities. As I have said, this is of crucial importance, considering the fundamental impact CCPs can have on monetary policy. 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. We are confident that the EU legislator will fully recognise this imperative.
Full speech here