Chairman Roberts Applauds CFTC-European Commission Announcement on Clearinghouses

Statement

U.S. Senate Committee on Agriculture, Nutrition, and Forestry Chairman Pat Roberts, R-Kan., applauded today's announcement on U.S.-based clearinghouses from U.S. Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert.

In implementing European Market Infrastructure Regulations (EMIR 2.2), the European Commission (EC) has indicated, through its delegated acts, it will not subject U.S.-based clearinghouses to the direct supervision by the European Securities and Markets Authority.

"I applaud Chairman Tarbert and the CFTC for their tireless work to ensure U.S.-based clearinghouses are not subject to burdensome and duplicative European rules and regulations," said Roberts. "This is a step in the right direction, and I'm hopeful, after the 30 day comment period, the EC will vote in favor of this rulemaking and there will not be any subsequent objection by the European Parliament."

Chairman Roberts has long supported the CFTC's position on this issue. In January 2018, Chairman Roberts and Ranking Member Debbie Stabenow, D-Mich., sent a bipartisan letter of support to former CFTC Chairman J. Christopher Giancarlo for his commitment to honor mutually recognized equivalency agreements regarding cross-border clearinghouses.

Prior to the United Kingdom's 2016 referendum to leave the European Union ("Brexit"), the CFTC and the EC reached a unanimous and bipartisan agreement on cross-border clearinghouse oversight, resulting in strong oversight while still providing firms the flexibility that is needed in the global derivatives marketplace.

Post-Brexit, the EC proposed a major overhaul of its financial services regulatory framework, threatening the 2016 CFTC- EC agreement while empowering European regulators with broad and duplicative supervisory authority over U.S. clearinghouses operating in Europe.

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