Ombudsman pushes for answers after market-moving speech given in private. ECB preparing response.
On May 18, a speech that moved the euro more than a cent was given to a private group of hedge fund managers before it was made public. The talk on front-loading ECB bond purchases from the ECB's Coeure outraged traders and came just days after the US doled out fines for FX manipulation.
The ECB blamed an 'internal procedural error' and the EU ombudsman wants to know what's been put in place to make sure it won't happen again.
"I should be grateful if the ECB could provide a more detailed account of the incident in question and in particular of the measures it has taken to avoid a similar incident," the ombudsman, Emily O'Reilly, said in a letter to ECB President Mario Draghi published on her office's website. "For obvious reasons, your reply should in principle be public."
A spokesman for the ECB said it will respond to the request and that the answer will be public.
It will surely be a hot topic at the ECB decision on June 3.