EUROPEAN UNION: European Commission Approves ECBs Changes to Clearing Systems

Wednesday October 4 2017

On 3rd October 2017, the European Commission (EC) approved the European Central Banks (ECB) changes to Article 22 of the ECB Statute. This change will permit the ECB to regulate “clearing systems for financial instruments” for monetary policy purposes, as it complements the Commission’s legislative proposal of 13 June 2017 to amend Regulation (EU) No 648/2012.

The Commission has agreed with the ECB that the increasing systemic importance of CCPs could give rise to risks that could affect clearing systems, which may have a hinder the bearing on the smooth operation of payment systems and which may affect price stability.

For this reason the Commission supports the ECB’s proposed changes to Article 22 which will be brought to the European Parliament and the Council for debate.

Moreover, the Commission’s legislative proposal of 13 June 2017 also takes as a basis that central banks of issue may be able to impose additional requirements on Union CCPs and systemically important third country CCPs.

Within the framework set forth in its legislative proposal, the Commission is therefore of the view that it is appropriate for the ECB to be empowered to take decisions and to make regulations to the extent necessary regarding clearing systems for financial instruments.

For additional information please click the link above