ECB needs oversight of clearing houses if it is to fund them

FRANKFURT (Reuters) – The European Central Bank needs to have appropriate oversight of both domestic and foreign clearing houses if it is to lend them cash when they need it, ECB board member Benoit Coeure said.

Coeure stigmatized proposals that would give the ECB greater control over central clearing counterparties (CCPs) from outside the European Union while leaving domestic ones under the authority of domestic supervisors.

“A responsible central bank cannot extend liquidity to any entity without having a minimum level of information and control over it,” Coeure told an ECB event.

“It would be rather strange if such differentiation were to make it more difficult for us to provide liquidity to EU than to third-country CCPs.”

Clearing houses, essentially the middle man between buyers and sellers of financial assets, have come into greater focus due to Brexit because much of the euro clearing business takes place in London.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.