May 25, 2018 / 12:39 PM / in a year

Bundesbanker 'ill at ease' over post-Brexit euro clearing rules

FRANKFURT (Reuters) - Proposed tougher European rules for foreign clearing houses may still leave EU regulators short of the power they need to protect Europe’s financial sector after Britain leaves the bloc, a board member of Germany’s central bank warned.

“If push comes to shove, we would rely on an entity outside the euro zone to preserve a key part of the European financial market’s ability to function,” Joachim Wuermeling, a member of the board of the Bundesbank, told Reuters in an interview.

“As a regulator I am still ill at ease when I look at this construction, under which I would be informed but cannot intervene,” he said.

A European Parliament committee last week voted in favor of a draft law that instructs EU regulators to check on “systemic” foreign clearing houses that handle large amounts of euro-denominated assets like interest rate swaps.

Reporting by Frank Siebelt; Writing by Maria Sheahan; Editing by Paul Carrel

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