FRANKFURT (Reuters) - Proposed tougher European rules for foreign clearing houses may still leave EU regulators short of the power they need to protect Europe’s financial sector after Britain leaves the bloc, a board member of Germany’s central bank warned.
“If push comes to shove, we would rely on an entity outside the euro zone to preserve a key part of the European financial market’s ability to function,” Joachim Wuermeling, a member of the board of the Bundesbank, told Reuters in an interview.
“As a regulator I am still ill at ease when I look at this construction, under which I would be informed but cannot intervene,” he said.
A European Parliament committee last week voted in favour of a draft law that instructs EU regulators to check on “systemic” foreign clearing houses that handle large amounts of euro-denominated assets like interest rate swaps.
Reporting by Frank Siebelt; Writing by Maria Sheahan; Editing by Paul Carrel