Austin Scott, David Scott Welcome Actions to Clarify EU Supervisory Oversight of U.S.-Based Clearing Houses
Washington, DC – In response to the delegated acts published Thursday by the European Commission as part of the European Market Infrastructure Regulations (EMIR 2.2), which would clarify European Union (EU) regulations relating to U.S.-based central counterparty clearing houses (CCPs) operating in the EU, House Agriculture Subcommittee on Commodity Exchanges, Energy, and Credit Chair David Scott (D-GA-13) and Ranking Member Austin Scott (R-GA-08) released the following statements welcoming the news:
“I am pleased to learn about the positive developments announced today by the European Commission. These delegated acts are an encouraging step forward for U.S. clearinghouses and derivative markets that will pave the way for productive collaboration between the CFTC and their European counterparts. After months of tireless efforts, I believe this proposal will empower the CFTC and European regulators to uphold a cooperative framework and will promote strength and stability in global derivatives markets,” said Chairman David Scott.
“I am heartened by the news today that our European colleagues were willing to address our substantive concerns with the reach of EMIR 2.2. I am optimistic that there are many more regulatory challenges that we can solve if we can listen to one another and respect the expertise of both American and European regulators,” said Ranking Member Austin Scott.
In issuing the delegated acts, the EU makes clear that U.S. CCPs will not be deemed to be tier 2, and thus not classified as “systemically important” or subjected to additional regulation by the EU. Chairman Scott and Ranking Member Scott have repeatedly made it clear in the past that the Subcommittee would not accept EU control in any form over U.S.-based CCPs or other domestic financial markets.
Today’s announcement begins a 30-day open comment period, after which the European Commission will vote to send the delegated act to the EU Parliament for a vote.