MEP Ferber: London euro clearing can't continue

Author: Lizzie Meager | Published: 10 May 2017

German member of European Parliament Markus Ferber has said the fact that euro clearing currently takes place outside the eurozone is an 'anomaly' that cannot be maintained after Brexit.

"On crucial issues of financial market stability, the EU must not rely on the mere goodwill of third country authorities," Ferber told IFLR. "EU supervisory authorities need direct scrutiny and intervention powers, and this is most effectively accomplished on European soil."

He said the European Parliament will make sure this principle is firmly anchored in European law.

Meanwhile clearing house LCH has said a location policy will inevitably result in the fragmentation of liquidity. 

"And if you have that you have less efficient markets, and less access to markets," said chief operating officer Daniel Maguire, according to Risk. "We're not sure that's the right outcome...it's important we try to keep this global liquidity pool together," he added.

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