The City has received backing from the US as European politicians call for euro clearing activities to be moved from London and into the eurozone.
Sharon Bowen, the commissioner of the Commodity Futures Trading Commission (CFTC), said yesterday it was not for regulators to decide where business should take place.
The European Central Bank (ECB) has previously attempted to remove euro clearing from the City, and EU calls for it to try do so again have intensified since the UK voted for Brexit last year.
“We hear the noise around euro location policy for supervisory reasons... how have we dealt with this in the US?” Bowen said at a Eurofi event.
“We don’t not require that US dollar-denominated transactions are cleared in the US. In fact, the CCP [central counterparty clearing house] which deals with the largest US dollar set of transactions is not located in the US. We don't see this as an issue as we have a great communication with this institution and its primary supervisor.
“More importantly we consider that it is not for regulators to determine where business should take place, this is a global markets.
"We believe that this view is essential as it encourages innovation in our economy.”