ARTICLE
30 March 2015

EU General Court Finds Against The European Central Bank’s CCP Location Policy

SS
Shearman & Sterling LLP

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On March 4, 2015, the EU General Court delivered its judgment on the UK Government’s challenge of the European Central Bank’s CCP location policy set out in the ECB’s Eurosystem Oversight Policy Framework.
European Union Finance and Banking

On March 4, 2015, the EU General Court delivered its judgment on the UK Government's challenge of the European Central Bank's CCP location policy set out in the ECB's Eurosystem Oversight Policy Framework. The EU General Court has annulled the Eurosystem Oversight Policy Framework in so far as it sets a requirement for CCPs involved in the clearing of securities to be located within the Eurozone. The policy's aim was to prevent CCPs in the European Union but outside the Eurozone from being able to have access to ECB Euro settlement facilities. The outcome is that UK CCPs will have access to Euro settlement facilities with the ECB, as generally required under EMIR, without being forced to relocate their businesses.

The judgment is available at: http://curia.europa.eu/juris/document/document.jsf?text=&docid=162667&pageIndex=0&doclang=EN&mode=req&dir=&occ=first&part=1&cid=376135.

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