ECB derivatives-clearing orders would get time limit in EU compromise bid

13 November 2018 7:23am
Clearinghouses could face only temporary regulatory orders from EU central banks, limited to 6 months plus another half year’s extension, in a proposed compromise among governments on the supervision of derivatives markets after Brexit.

The time limit, in amendments being discussed by national negotiators tomorrow, would dial back the proposed powers for the European Central Bank and other monetary authorities to intervene in areas such as margin requirements.

Reining in the ECB could be key to reaching a first-stage deal among the member states this year. Countries including France are pushing for the ECB to play a greater role, but Germany and others are seeking to keep those rules in the hands of market regulators.