Lord Myners – 2016 Parliamentary Question to the HM Treasury
The below Parliamentary question was asked by Lord Myners on 2016-07-20.
To ask Her Majesty’s Government what assessment they have made of the consequences for financial stability of combining four large central counterparties (CCPs), LCH.Clearnet Ltd, LCH.Clearnet SA, Eurex and CC&G, when the London Stock Exchange and Deutsche Borse merge; whether adequate recovery and resolution frameworks will be in place for each of these CCPs; and whether those frameworks will be ring-fenced from each other.
Lord O’Neill of Gatley
LCH.Clearnet Ltd, LCH.Clearnet SA, Eurex Clearing and CC&G are separate CCPs regulated under European Regulation No 648/2012 (EMIR) by their respective regulators. The London Stock Exchange Group and Deutsche Borse have publicly stated their intention that “[t]he existing regulatory framework of all regulated entities within the Combined Group would remain unchanged” following the merger. Once notified by the companies of their proposal to merge, the Bank of England will assess the proposal for a change in control of LCH.Clearnet Ltd in line with the criteria set out in EMIR.
