Case T-496/11 UK v European Central Bank

On 4 March 2015, the General Court of the European Union allowed an application for annulment brought by the United Kingdom to a location policy adopted by the European Central Bank for Central Clearing Counterparties (‘CCPs’). The General Court ruled, contrary to submissions from the ECB, that the UK’s challenge was admissible. The UK was able to bring the challenge even though it was not a party to the Eurozone arrangements. It also upheld the UK’s challenge to the competence of the ECB to adopt the location policy. The location policy required CCPs clearing a specified volume of Euro a day to be located within the Eurozone. The General Court ruled that the ECB does not have the competence necessary to regulate the activity of securities clearing systems. The location policy was accordingly annulled on the basis that the ECB had no power to make it.

The full judgment can be read by clicking on the attached document.

Kieron Beal QC and Pushpinder Saini QC were instructed by the UK Government to settle the written challenge.
Kieron Beal QC appeared before the General Court at an oral hearing in July 2014.