FRANKFURT, June 20 (Reuters) - It may be appropriate for the European Union to force the relocation of clearing activities from London after Brexit if there is no other way to control risks, European Central Bank Executive Board Member Benoit Coeure said on Tuesday.
Around 90 percent of euro denominated derivatives are cleared in London and post-Brexit options include denying recognition to a clearing house if it poses excessive risks and to require it to move to the EU.
“I believe that such an approach will be justified in case EU authorities are unable to adequately control risks and fulfill their mandates through other means,” Coeure said in a speech.
He added that the ECB would issue an opinion on clearing in the coming months. (Reporting by Balazs Koranyi; Editing by Alison Williams)