ECB's Mersch: Need to control the impact of offshore clearing activities on the stability of our currency

Key quotes from the speech by Yves Mersch, Member of the Executive Board of the ECB, at the Government Borrowers Forum organized by the World Bank, Luxembourg, 18 May 2017:

• In terms of notional amounts, more than 90% of the euro-denominated derivatives business of euro area banks is cleared via UK CCPs
• The UK’s recent decision to leave the EU has called into question the ability of authorities such as the Eurosystem to ensure they can continue to adequately control the impact of offshore clearing activities while maintaining the stability of their currency
• I want to reiterate the need to reflect on whether recent geopolitical events require the Eurosystem to take action to ensure that we continue to adequately control the impact of offshore clearing activities on the stability of our currency