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 Relations Economy and Environment Working Group, Economic and Monetary Affairs, Austria; Communications Strategy
Phone: +32 487 384 784


Step up fight against racism in sport
24.05.2018 - 10:30

Step up fight against racism in sport

Two days of events this week are aimed at raising awareness and fighting racism and anti-Semitism in sport. MEPs and members of the sports world are...
Traffic on multiple lane highway
24.05.2018 - 09:50

Road charges: fair charging for better roads

The European Parliament’s Transport and Tourism Committee voted today to phase out Eurovignettes for heavy goods vehicles and vans and for...
Security concept
23.05.2018 - 17:25

Privacy Shield needs to be improved, not abolished

The EU-US Privacy Shield offers legal certainty in free trade and the protection of data; jeopardising it now would be a step back for European...
Zuckerberg testimony requires concrete action, says Weber
23.05.2018 - 15:15

Zuckerberg testimony requires concrete action, says Weber

The meeting between Parliament leaders and Facebook CEO Zuckerberg left many questions unanswered and the need for more concrete action to ensure...

Highlights of the week

22.05.2018 - 25.05.2018
Riga, Latvia

Discussing the European way of life in Riga

European politicians, academics, policy-makers and opinion-shapers will gather in Riga, Latvia, from 23-25 May at the annual conference of the...

Mark Zuckerberg to meet EP leaders

An extraordinary meeting with the Chief Executive Officer of Facebook, Mark Zuckerberg, will take place on Tuesday in the European Parliament. The...
High angle view of traffic on highway

Road charges: fair charging for better roads

The Transport and Tourism Committee will vote on Thursday morning on the phasing-out of the Eurovignette for heavy duty vehicles and vans....
Photo of Christos Stylianides