15 December 2017
visit www.avoka.com

EU court quashes ECB counterparty location policy

04 March 2015  |  2230 views  |  0 Source: European Commission

The Eurosystem comprises the European Central Bank (ECB) and the national central banks o fthe Member States that have adopted the euro as a common currency.

On 5 July 2011, the ECB published on its website the Eurosystem Oversight Policy Framework, which describes the Eurosystem’s role in the oversight of ‘payment, clearing and settlement systems’. According to the ECB, the oversight of those systems and that infrastructure as a whole stems from the task assigned to it by the FEU Treaty of promoting the smooth operation of payment systems and from Article 22 of the Statute of the European System of Central Banks and of the ECB, which provides that ‘the ECB may make regulations, to ensure efficient and sound clearing and payment systems within the Union and with other countries’.

In the Policy Framework, the ECB explained that securities settlement systems and central counterparty clearing houses (central counterparties; ‘CCPs’) are key components of the financial system. A financial, legal or operational problem affecting them can be a source of systemic disturbance for the financial system. That is particularly true of CCPs in that they are a focal point for credit and liquidity risk. It was further stated in the Policy Framework that malfunctioning on the part of infrastructures located outside the euro area could have adverse effects on payment systems located in the euro area, whilst the Eurosystem has no direct influence on such infrastructures. The ECB drew the conclusion that infrastructures that settle euro-denominated transactions should be legally incorporated in the euro area with full managerial and operationalcontrol and responsibility, over all core functions, exercised from within that area.

Full paper:» Download the document now 108.3 kb (PDF File)

Comments: (0)

Comment on this story (membership required)

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.solutions.lexisnexis.comvisit www.aciworldwide.com

Top topics

Most viewed Most shared
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
10191 views comments | 16 tweets | 25 linkedin
satelliteRipple completes XRP Lockup
9318 views comments | 3 tweets | 2 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
8911 views comments | 17 tweets | 36 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
7590 views comments | 20 tweets | 11 linkedin
Australian Government amends AML rules to cover digital currenciesAustralian Government amends AML rules to...
7216 views comments | 15 tweets | 24 linkedin

Featured job

Competitive package
New York City, NY - USA

Find your next job