October 18, 2018 / 12:02 PM / a month ago

ECB's Nowotny calls for transition phase on clearing after Brexit

VIENNA, Oct 18 (Reuters) - Transition phases should be introduced even in the event of a hard Brexit to avoid uncertainty in shifting derivatives clearing from Britain to the euro area, European Central Bank policymaker Ewald Nowotny said on Thursday.

Nowotny said the ECB’s position is that in principle if such activities are carried out in euros they should happen in the euro area, and that “first steps” had been made in that direction.

“The sums involved are so big and the relationships so complex that I believe one should consider whether certain transition periods should be built in,” he told an investors’ conference, adding that this was particularly important in the event of a hard Brexit. “A phase of uncertainty must not arise.” (Reporting by Francois Murphy Editing by Balazs Koranyi)

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