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“We need to have proper tools under EU law that we can ensure the stability of the common currency,” the ECB president told European Parliament lawmakers at the hearing in Brussels. For his institution it will be “crucial that it can at least preserve the current level of involvement over systemically important euro-denominated clearing activities, regardless of the framework adopted by the EU legislator and of the terms of the future EU-U.K. relation.” [...]
Draghi told lawmakers it will ultimately be up to them to decide on the type of regime that will be applied to “systemically important third-country” central counter-party clearing houses. He also welcomed measures proposed by the European Commission to protect against financial-stability risks posed by clearinghouses outside the bloc that play a “systemic role” in its markets.
The proposal could mean “enhanced” EU supervision of major U.K. firms, including London Stock Exchange Group Plc, that clear as much as 75 percent of euro-denominated interest-rate derivatives. The EU could also require clearing to take place inside the bloc.