Location of Central Counter Parties (CCPs)

04 March 2015

ECJ decision avoids the main issue but pits the UK directly against the Euro area – the worst possible outcome.

Ultimately, this case is about the independence of the ECB in conducting the monetary policy of the euro area – not about politics, the single market or the convenience of commercial operators. So the risk remains of an end-result that could be the worst possible outcome for political relations between the UK and the euro area: the UK may be out-voted by a bloc vote on a subject that it argues is fundamental to the single market applying to all 28 states. However, is there any need to decide before a Brexit referendum?

What next? The ECB has a right of appeal on a point of law but it would be well advised to tackle this problem head on and seek a change in its Statute if it wishes to pursue this policy. Such a change requires:

The full analysis piece and conclusions are available to consultancy clients.

ECJ's press release

© Graham Bishop