(Adds more detail, background)
By Michael Nienaber and Huw Jones
BERLIN/LONDON, Nov 1 (Reuters) - The German Finance Ministry is closely monitoring potential risks from euro clearing after Britain's planned departure from the European Union, a spokeswoman said on Thursday.
Clearing houses or central counterparties (CCPs) ensure a stock, bond or derivatives transaction is completed, even if one side of the trade goes bust. LCH, a unit of the London Stock Exchange, clears the bulk of euro-denominated derivatives.
"In the light of Brexit there will be new challenges at the European level regarding the regulation of CCPs being outside the EU in future," the spokeswoman said.
"The Finance Ministry will closely monitor potential risks arising from the fact that a major share of CCP clearing in future will occur in the future third country UK and therefore beyond the control of EU supervisory authorities," she said.
Resulting risks should be addressed by revising the European Market Infrastructure Regulation, she added.
EU states and the European Parliament are nearing the final stages of approving the revisions which introduce far tougher EU scrutiny of foreign clearers in return for allowing then to serve customers in the bloc.
Some EU policymakers want to go further a see euro clearing moved from London to alternatives in the euro zone, such as Deutsche Boerse in Frankfurt, but this is seen as a medium to longer term goal.
Reporting by Michael Nienaber Writing by Joseph Nasr Editing by Michelle Martin