Parliament (Hansard of the House of Commons) Treasury: European Regulation of Financial Services
September 16, 2011
On 5 July 2011, the European Central Bank (ECB) published a Eurosystem Oversight Framework (1). This includes a policy that central counterparties that clear euro-denominated credit derivatives above certain thresholds (€5 billion average daily net credit exposure or 5% of certain product categories) must, "be legally incorporated in the euro area with full managerial and operational control and responsibility over all core functions, exercised from within the euro area."
The UK considers that this policy is contrary to fundamental single market principles and fundamental principles of EU law. The Financial Secretary to the Treasury has stated that this policy is discriminatory on the grounds of nationality and runs counter to the EU general principle of equality.
Accordingly, the UK Government have chosen to challenge the ECB's Eurosystem Oversight Framework policy, which it considers to have legal effect and therefore can be challenged under the treaty.