UK Wins Euro-Transaction Ruling Against ECB

The UK has won a court ruling against the European Central Bank which could have forced firms handling large euro transactions to move to the eurozone.

The surprise victory ends a three-year dispute which could have banned the clearing and settlement of euro-transacted deals in the UK.

The ECB had said firms managing large euro deals should be eurozone-based.
But the EU General Court ruled that the ECB lacked the legal powers to enforce this.

“The ECB lacks the competence necessary to regulate the activity of securities clearing systems as its competence is limited to payment systems alone,” the Luxembourg-based court said in its ruling.

The UK had argued that the ECB policy, set out in an 2011 paper but never enforced, went against the EU’s single market establishing the free movement of goods, people, services and capital.

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza