Foreign exchange brokers in Barcelona are in for a surprise.
On Monday, the European Central Bank (ECB) will open a new facility in Barcelona, the first of its kind in Spain.
The facility will serve as a clearinghouse for foreign exchange and will house the ECB’s national clearinghouse.
The ECB will also establish a clearing house for euro zone foreign exchange on its own accord, with the ECB overseeing all euro zone financial settlement activities.
“It will be a new kind of clearinghouse that will serve the whole euro area, rather than only a single clearinghouse,” a spokesperson for the Catalan Central Bank told Bloomberg.
The announcement came as the European Commission announced that it would close its own euro zone exchange facility on Monday, and would instead establish a separate, European counterpart in Dublin.
It was the first time the Commission had shut down a European counterpart, the Financial Stability Board (FSB).
The FSB was established to deal with financial stability and other issues, such as capital controls and capital flight, after the 2008 financial crisis.
The Commission said it would end its involvement in the euro zone clearinghouse and that it will be replaced by the new facility.
It was not immediately clear when the new clearinghouse would open or how long it would take to open.
A spokesperson for Barclays told Bloomberg: “It’s a significant milestone, and it’s not something that we would have anticipated.
Barclays will open its first international clearinghouse in the U.K. and will be the first to be based in Europe.
We’re delighted to be the official clearinghouse partner for the European Union’s monetary union.”
The ECB has previously said it was open to expanding its existing operations in the EU to cover foreign exchange.
“The central bank’s actions have the potential to significantly increase the availability of financial services to the financial sector in Europe,” said the ECB in a statement last week.
“This is an important step forward for the clearinghouse, as it will provide a further means of accessing a more comprehensive clearing network, which will help to ensure the integrity of the financial system and help to mitigate the risk of systemic risks.”
The new clearing house is expected to open in September.