US derivatives clearinghouses and regulators have won some relief in a European Parliament committee vote to scale back European authorities’ extraterritorial reach on a proposal that has angered American officials.
“For the issues that matter to the Americans, we found solutions,” Danuta Hübner, the parliament’s leader on the bill, told MLex.
Europe’s proposal to overhaul clearinghouse supervision aims chiefly at preparing for Brexit, when trading in crucial euro-denominated swaps — handled by LCH, a unit of London Stock Exchange Group — will fall outside the bloc.
But the move to give the European Securities and Markets Authority, or ESMA, power over clearinghouses abroad, or else cut off EU traders’ access to them, upset US companies and agencies including the Commodity Futures Trading Commission.
US derivatives clearinghouses get relief in EU Parliament committee vote
21 May 2018 9:14am