Press Release

Brexit: no arbitrary decisions on British clearing houses

, 16.05.2018 - 11:34
Aerial view of London and the River Thames

The EPP Group in the European Parliament does not want to require British-based clearing houses to relocate after Brexit, but wants more regulatory power over non-EU clearing houses if they clear transactions in Euros

"If you want to do business in Euros you have to accept that there will be a referee from the European Union, a real referee who has the power to send you off the pitch", said Danuta Hübner MEP, the European Parliament's negotiator for the new EU rules for clearing houses in and outside the EU. Clearing houses are financial institutions which facilitate trading done on derivatives and equities markets. Their involvement is mandatory for the most systemically significant transactions. The purpose is to reduce the risk of transactions.

The new law allows for the possibility of the European Commission prohibiting the recognition of a non-EU clearing house by EU banks. "I want more clarity and certainty on when the referee should send a non-EU clearing house off the pitch. It is not a question of location. It is not a question of 'last resort' or 'very last resort', but of proportionate rules and evidence-based decisions. I don't want this to be decided either arbitrarily or for political reasons", Hübner explained.

Parliament's Committee on Economic and Monetary Affairs votes this evening, Wednesday, on Hübner's changes to the law the European Commission proposed in June 2017. Currently, more than 90% of the most important derivatives transactions in Euros are cleared by British-based clearing houses, which, after Brexit, will be outside the EU.

We are not taking any powers away from third country regulators in their own country. Danuta Hübner MEP

"Denying a non-EU clearing house recognition in the EU should be a credible option. It should remain in the legislative text as an insurance mechanism in case things go wrong and supervisory cooperation does not work", Hübner stressed.

"Increased powers for the EU's financial market watchdog, ESMA, over systemically significant non-EU clearing houses does not mean that we are taking any powers away from third country regulators in their own country. We do not regulate third country markets, but aim at having strong cooperation with third countries", Hübner explained.

Note to Editors
The EPP Group is the largest political group in the European Parliament with 219 Members from 28 Member States

MEP Contacts

Danuta Maria HÜBNER
BRU - Phone: +32 (0)2 2845192 Fax: +32 (0)2 2849192

Press Contacts

Daniel Köster
Press Officer on Economy and Environment, Economic and Monetary Affairs and Austrian Media, Communication
Phone: +32 487 384 784


Boy drinking water from bathroom faucet
23.10.2018 - 17:21

Safe and cheap access to water for all Europeans

When we turn on the tap, we rarely think about where the water comes from, or where it goes afterwards. Water seems limitless, and we often forget it...
Boy drinking water from bathroom faucet
23.10.2018 - 13:24

Safe and cheap water for everyone

EU listens to people's concerns in first ever Citizens’ Initiative Right2Water "The way we use water defines the future of humanity...
Smart Borders
23.10.2018 - 09:09

Functioning and safe Schengen area requires clear EU rules

Schengen is one of Europe’s success stories but further action is needed to ensure that the freedom of movement is not put at risk. A report...
photo of the students in a classroom
22.10.2018 - 19:01

Erasmus+: EPP Group proposes concrete steps for programme

Today, the European Parliament’s (EP) Culture and Education Committee presented its draft Report on the Erasmus+ Programme authored by Milan...

Highlights of the week

22.10.2018 - 26.10.2018
Border Entry / Exit signage between UK and France

Schengen Information System

The European Parliament will vote on Thursday on its final approval of the improved Schengen Information System (SIS) which locates wanted persons...
Discarded and polluting plastic garbage on sand

Reducing plastic waste

The EPP Group is in favour of new rules to reduce plastic pollution in Europe. The rules will be voted on in the European Parliament on Wednesday....
Young woman drinking glass of water

Safer drinking water for all

We want everyone to have access to quality water that is affordable and safe. On Tuesday, MEPs will approve changes to the new law on water safety...
Damir Glas