German member of European Parliament Markus Ferber has said
the fact that euro clearing currently takes place outside the
eurozone is an 'anomaly' that cannot be maintained after
"On crucial issues of financial market stability, the EU
must not rely on the mere goodwill of third country
authorities," Ferber told IFLR. "EU supervisory authorities
need direct scrutiny and intervention powers, and this is most
effectively accomplished on European soil."
He said the European Parliament will make sure this
principle is firmly anchored in European law.
Meanwhile clearing house LCH has said a location policy will
inevitably result in the fragmentation of liquidity.
"And if you have that you have less efficient markets, and
less access to markets," said chief operating officer Daniel
according to Risk. "We're not sure that's the right
outcome...it's important we try to keep this global liquidity
pool together," he added.