ECB policy would shatter big CCPs, critics warn

shattered-glass-smash

Clearing houses that offer services in multiple currencies could find their operations fractured across those jurisdictions if other central banks decide to copy a policy outlined by the European Central Bank (ECB) in July this year – a big threat to LCH.Clearnet's SwapClear service, which offers over-the-counter derivatives clearing in 17 currencies. The ECB proposal is the subject of a legal challenge by the UK Treasury, announced last week.

"If the ECB policy proposal became law, it would set