SPEECHES & TESTIMONY

Statement of Chairman J. Christopher Giancarlo on European Commission Decision on Clearinghouses

December 19, 2018

Washington, DC – U.S. Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo issued the following statement regarding the European Commission’s Decision on the temporary and conditional equivalence of the United Kingdom’s regulatory framework for central clearinghouses:

“The CFTC welcomes the European Commission’s adoption of an equivalence decision regarding the United Kingdom’s legal and supervisory arrangements for central clearinghouses (CCPs),” said Giancarlo.  “The CFTC also welcomes the additional statement by the European Securities and Markets Authority (ESMA) of its intention to complete the recognition of U.K. CCPs pursuant to the EC’s equivalence decision in a timely manner.  Together the equivalence decision of the EC and the final recognition decisions of ESMA will permit EU market participants to continue clearing through U.K. CCPs for 12 months as of March 30, 2019 in the case of a U.K. exit from the European Union without a transition period.

“The EC’s decision and ESMA’s announcement to complete the relevant recognition decisions represent concrete steps to protect global financial stability and mitigate market fragmentation by providing market participants with important legal and regulatory certainty to manage their operations after Brexit.  These steps are commendable, and their implementation merits strong support.”