Press Release: Judgment in Case T-496/11 United Kingdom v European Central Bank

The General Court of the European Union annulled on 4 March 2015 the Eurosystem Oversight Policy Framework published by the European Central Bank (ECB), which required central counterparties to be located in the Eurozone.

The Court considered that the ECB did not have the competence necessary to impose such a requirement on central counterparties involved in the clearing of securities.

The United Kingdom had challenged the ‘Policy Framework’ published by the ECB, which set out the role of the ‘Eurosystem’ (the ECB and the national central banks of Eurozone states) as regards payment, clearing and settlement systems.

If the UK had lost the case, it was feared that some of the financial services industry in the City of London would have moved to a Eurozone financial market centre.

Open Europe wrote 'If the ruling had gone against the UK it would have seriously undermined the single market and significantly increased the power of the ECB – and probably would have made ‘Brexit’ more likely'.

• Primary Source

EurActiv, 04.03.15: UK wins right to continue euro clearing http://www.euractiv.com/sections/uk-europe/uk-wins-right-continue-euro-clearing-312615

ECB: Press Release, 04.03.15: ECB takes note of General Court judgment on location policy for CCPs https://www.ecb.europa.eu/press/pr/date/2015/html/pr150304.en.html

Blog: EU Law Analysis, 05.03.15: The financial services industry and the European Central Bank: the UK has won a battle, but can it win the war? http://eulawanalysis.blogspot.co.uk/2015/03/the-financial-services-industry-and.html

Blog: Open Europe, 04.03.15: UK secures important victory at ECJ to preserve the single market http://openeurope.org.uk/blog/uk-secures-important-victory-ecj-preserve-single-market/

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