US Commodity Futures Trading Commission chief backs City of London retaining euro clearing crown

 
William Turvill
Follow William
Shangri-La Hotel Opens In The Shard
The European Central Bank has previously attempted to remove euro clearing from the City (Source: Getty)

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.

Read more: Weber's threat over clearing is frivolous and parochial

“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.

Read more: UK government plays down concerns ECB could grab euro clearing from London

“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.”

Related articles