Lord Myners – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Myners on 2016-05-03.

To ask Her Majesty’s Government, further to the Written Answers by Lord O’Neill of Gatley on 26 April (HL7583 and HL7584), what assessment they have made of whether the same collateral could be used to support risk at both LCH and Eurex.

Lord O’Neill of Gatley

I refer the noble Lord to my previous answers of 26 April (HL7583 and HL7780) which noted that, once notified of the merger, the Bank of England and Financial Conduct Authority would assess the proposal from a regulatory standpoint, and that it would also be subject to assessments and approvals by the competition authorities, overseas regulators, and shareholders.

My previous answers further noted that any inter central counterparty links would need to be assessed against the relevant parts of European Market Infrastructure Regulation (EMIR) by the Bank of England, as supervisor of LCH.