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ECB recommends to amend Article 22

Darius McQuaid | 7:20 Friday 30th June 2017

The European Central Bank (ECB) has adopted the recommendation to amend Article 22 of its statute.

This change would provide the ECB with a clear legal competence in the area of central clearing.

This amendment would pave the way for the Eurosystem to exercise powers that are foreseen for central banks issuing a currency under the review of the European Market Infrastructure Regulation (EMIR) proposed by the European Commission.

These powers include a significantly enhanced role for central banks of issue in the supervisory system of central counterparties (CCPs), especially with regards to the recognition and supervision of systemically important third-country CCPs clearing large amounts of euro-denominated transactions.

The Eurosystem comprises the ECB and the 19 national central banks of the euro area.

These amendments to the EMIR will allow the Eurosystem to fulfil its role as the central bank issuing the single currency.

The amendments will also allow the Eurosystem to monitor and address any risks associated with central clearing activities that could affect the conduct of monetary policy, the operation of payment systems and the stability of the euro.

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