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Government to withdraw remaining legal challenges to ECB location policy

The government has recently (29 March 2015) confirmed that, in light of the agreements reached on sunday (29 March 2015) between the Bank of England and the European Central Bank (ECB) aimed at enhancing financial stability in relation to centrally cleared markets within the EU, it will write to the Registrar of the General Court of the European Union to withdraw Cases T-45/12 and T-93/13 (United Kingdom v ECB).

The European Central Bank (ECB) and the Bank of England (BoE) have recently announced a series of measures aimed at enhancing financial stability in relation to centrally cleared markets within the EU.

• The ECB and the BoE have agreed enhanced arrangements for information exchange and cooperation regarding UK Central Counterparties (CCPs) with significant euro-denominated business.
• The ECB and the BoE are today extending the scope of their standing swap line in order, should it be necessary and without pre-committing to the provision of liquidity, to facilitate the provision of multi-currency liquidity support by both central banks to CCPs established in the UK and euro area respectively. CCP liquidity risk management remains first and foremost the responsibility of the CCPs themselves

This announcement follows the judgement on 4 March by the General Court of the EU. In light of these agreements the ECB and UK government, as set out in the UK government’s announcement of today, have agreed to a cessation of all legal actions covering the three legal cases raised by the UK government.

Read more about the the recent announcement.