European Parliament member Danuta Hübner is calling on the European Securities and Markets Authority and the European Central Bank to use a cost-benefit analysis when deciding to recognize or reject a non-EU clearinghouse after Brexit. She says it is important to take into account the ability of the market to adapt to the rejection of any central counterparty.
Any decision to deny recognition to a non-European Union clearinghouse must be based on a cost-benefit analysis, Hübner said, adding to suggestions from the other two EU decision-making bodies that strict criteria will govern any move to relocate euro clearing away from London. She said an adaptation period may follow a decision to deny recognition to a non-EU clearinghouse.