The head of the US Commodity Futures Trading Commission, Christopher Giancarlo, in October said a regulatory proposal by the European Commission broke international norms by dictating rules to US clearing firms, and threatened to block EU banks from using US based clearing houses in retaliation.
Mr Kukies on Monday argued that the EU proposal was not at odds with current regulatory arrangements between the EU Commission and the CFTC. He stressed that the plan included “leeway to take into account and to build on existing agreements.” [...]
The deputy finance minister stressed that Berlin would “closely monitor potential risks” created by the fact that many derivatives will be cleared outside the EU’s jurisdiction post-Brexit. Mr Kukies backed the commission’s proposal to empower Esma and the European Central Bank to legally enforce EU-based clearing as a last-resort measure.
Speaking to an audience at Frankfurt Finance Week, Mr Kukies said that, from the German government’s point of view, the current agreement “provides a good basis for the future co-operation with the US.”
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