US derivatives plan may hit European clearinghouses, EU staffers say

29 October 2018 7:18pm
EU clearinghouses could soon face tougher requirements from US derivatives regulators, which could lead to reciprocal moves, European Commission staffers said, in a document that stands to escalate a trans-Atlantic spat over market oversight.

Brussels officials, writing in an internal analysis obtained by MLex, said they welcomed ideas from the US’s top derivatives regulator to show more deference to European authorities in supervising EU-based clearinghouses. The industry’s ranks include Deutsche Börse’s Eurex and — at least until Brexit — LCH, a unit of London Stock Exchange Group.

But an Oct. 1 policy paper by J. Christopher Giancarlo, chairman of the US Commodity Futures Trading Commission, gives little comfort until clarified in binding rule proposals, according to officials from the European Commission’s Directorate General for Financial Stability, Financial Services and Capital Markets Union, or DG Fisma.