A close second is the future of clearing in the UK. Will UK-based clearing houses be stripped of their ability to clear euro-denominated transactions? At present, the Eurosystem does not have regulatory competence to restrict clearing in the UK. However, continuation of clearing strongly depends on the acceptance of the European Court of Justice, as Mario Draghi emphasised yesterday.
And so far, the UK government has indicated that it would leave the European Court of Justice after Brexit. Furthermore, the EU has introduced clearing obligations for some interest rate derivatives and credit default swaps, and more are in the pipeline.