EU rejects US calls to water down post-Brexit clearing rules

EU rejects US calls to water down post-Brexit clearing rules

  05 Nov 2018

The European Union has rejected US calls to water down new derivatives clearing rules, saying lawmakers would not be “blackmailed”.

Speaking in Paris, Olivier Guersent, director general of the European Commission’s financial services directorate, said the EU had every right to supervise foreign financial firms in the same way as US regulators.

His comments come in the wake of statements made by US Commodity Futures Trading Commission (CFTC) chair Christopher Giancarlo, who threatened to prevent European banks from accessing US futures markets over EU plans for the oversight of foreign clearing houses after Brexit.

Mr Guersent said: “My friend Mr Giancarlo is blackmailing legislators”.

Talking about the CFTC possibly blocking EU banks from accessing US markets, Mr Guersent said: “I don’t like it but that is their right.”

The tussle for control of a serious chunk of the clearing market has emerged as one of Brexit’s key battlegrounds.

London is the focal point for clearing derivatives in the US dollar and the euro, but the European authorities want all activity in euros to take place within the EU after Brexit.

Some 90pc of the EU-based firms use the UK for interest rate swaps, one of the most common forms of derivative contract.

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