As I have said in the past, the risks stemming from this situation are currently adequately covered: the European Market Infrastructure Regulation allows the Eurosystem to assess and monitor risks through active participation in cross-border supervisory colleges, whose role and prerogatives are guaranteed by the authority of the European Court of Justice.
This framework is complemented by the dedicated Memorandum of Understanding signed by the Bank of England and the European Central Bank. 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.