April 23, 2018 / 2:19 PM / a year ago

EU must be involved in overseeing, winding down foreign clearing houses

FILE PHOTO: Benoit Coeure, board member of the European Central Bank (ECB), is photographed during an interview with Reuters journalists at the ECB headquarters in Frankfurt, Germany, May 17, 2017. REUTERS/Kai Pfaffenbach/File Photo

FRANKFURT (Reuters) - European Union authorities need to be involved in overseeing and winding down clearing houses that may have an impact on the bloc, a European Central Bank director said on Monday.

The supervision and resolution of London-based central clearing counterparties (CCP) after Britain leaves the EU is an important issue in Brexit negotiations.

“EU authorities also need to have tools for direct liaison with a third country CCP ... that may pose specific concerns from an EU financial stability perspective,” Benoit Coeure told an event in Frankfurt.

“Similarly, as regards CCP resolution, the development of home country arrangements in line with international standards must be complemented with the involvement of relevant EU authorities in resolution planning,” he added.

Reporting By Francesco Canepa

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