The European Central Bank (ECB) has published a policy document which, if implemented, will require central counterparties handling more than five per cent of euro-denominated products to be based in the euro-zone. This would be hugely disadvantageous to London based clearing-houses who would have to establish their operations within the euro-zone.
Mark Hoban, Financial Secretary to HM Treasury, said in a statement to the House of Commons: “The UK considers that this policy is contrary to fundamental market principles and fundamental principles of EU law. It is also discriminatory on grounds of nationality and runs counter to the EU principles of equality.”
The UK Government has begun proceedings against the ECB in the European Court of Justice.
Click here for the ECB policy document
Click here for the HM Treasury statement