EU rules for overseas clearinghouses, being drafted in response to Brexit, have caused a public split between the European Commission and the European Securities and Markets Authority.

The EU executive takes issue with the financial watchdog’s advice on how non-EU clearinghouses should be able to access their customers in the bloc, which a commission representative described as “raising fundamental issues,” according to a new ESMA document.

Asset managers, insurers and hedge funds will have their potential economic threat monitored on a sector-wide basis rather than individually under final guidance issued by the US Treasury-led Financial Stability Oversight Council.

This “activities-based” approach to possibly tougher supervision would tag a particular firm “only in rare instances,” the guidance said, drawing criticism by House Financial Services Committee Chair Maxine Waters and praise from industry groups.

The US Libor replacement’s reliance on an overnight interest rate rather than an estimated future benchmark creates “huge” uncertainty that’s impeding market participants’ switch to the new benchmark, a JPMorgan Chase executive said.

“The mentality of the market is very much, 'I need a market in advance where I know my payment,’” JPMorgan managing director Tom Pluta said at a recent government forum.

US derivatives-trading recognition of European clearinghouses and banks would be subject to new review under a bill approved by the House Agriculture Committee in response to the EU’s recent EMIR 2.2 law.

A similar bill was introduced in the Senate Agriculture Committee last week, reflecting the breadth of congressional concern about the post-Brexit law aimed at ensuring non-EU clearinghouses meet the bloc’s standards.

Banks’ weaknesses in complying with anti-money-laundering and cybersecurity rules plague both foreign firms operating in the US and large American institutions, a US Federal Reserve report this week said.

More than 90 percent of the shortcomings found in foreign banks operating in the US dealt with such internal governance and controls matters, the Fed’s second annual supervision and regulation report said.