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...“When we come to a logic of seizing of assets . . . then you see the trust in the Euroclear system, the trust in the European capital markets, the trust in euro as a currency substantially affected.”...
...Countries such as Germany and France as well as the European Central Bank have warned of potential risks to the financial system, fearing that such a move could lead to other central banks withdrawing their...
...Euroclear, which last year handled €37.7tn in assets, is regarded as having systemic relevance for the international financial system, and handles significant amounts of assets from other countries including...
...Blockages are building up in the system, in all the wrong places....
...the clearing system....
...If not by regulatory decision, then the EU (and others) could pass legislation requiring CBR deposits to be split off into new banking entities to insulate the financial system from risks....
...The bulk of Russian central bank assets — roughly €190bn — is held at Euroclear, a central securities depository based in Belgium....
...This cash sits somewhere in the US financial system, presumably in Euroclear’s correspondent bank(s). And the Russian central bank may have other holdings with private US financial institutions....
...China, which opposed western plans to impose “unilateral sanctions” on Moscow in the first place, has concerns about the credibility of the international financial system if frozen assets are mobilised,...
...EU officials have been grappling with how best to deploy the proceeds from Russian assets that are stuck in Europe’s financial system....
...Context: Euroclear processes transactions in the international financial system, handling €37.7tn in assets last year....
...But Belgium’s federal system means that regional parties will have to come together to form a national government....
...And if suddenly you take it over and just decide that it’s no longer the state’s property, it could really deal a blow to the monetary system....
...These are the most sacrosanct kinds of assets in the global financial system.”...
...Most of this is caught in the plumbing of the European financial system, run by the world’s largest clearing house: the Brussels-headquartered Euroclear....
...Lieve Mostrey, chief executive of settlement house Euroclear, said there was “logic” for the EU and UK markets to be synchronised....
...Sweden’s system appears to have translated into stock market returns....
...The European Central Bank has warned that touching the profits made by Euroclear, the central securities depository holding the assets in Belgium, could destabilise the financial system....
...Officials also worry about weakening Europe’s central securities depositories, which play a critical role in the financial system....
...Markets today thus echo the risk pattern of 2007: a heavily interconnected system is highly exposed to developments in a murky, little-understood corner of finance — but instead of subprime mortgages, the...
...If countries started expropriating each others’ assets it would soon gum up the international financial system....
...The trial was led by the securities depository Euroclear and included many of France’s largest banks, as well as the French public debt office and the central bank, and used a system developed by US-based...
...Institutions such as Euroclear reinvest cash generated by those assets and make a profit that officials are considering siphoning off....
...The cross-listed DWS ETFs will use Euroclear Bank’s centralised clearing for cross-border securities, the international central securities depository system, which has already transformed ETF trading in...
...But there is a small possibility that the whole system breaks....
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