CFTC Commissioners Warn Against EU CCP Regulatory Changes

CFTC Commissioners urged European Union regulators to continue cross-border regulatory deference, notwithstanding the United Kingdom's exit from the EU ("Brexit").

At the Futures Industry Association annual meeting in Boca Raton, Florida, CFTC Commissioners Rostin Behnam and Brian Quintenz each made a case against proposed changes to the EU's regulation of central counterparty clearinghouses ("CCPs") following Brexit. Mr. Behnam warned that the EU's approach could lead to certain U.S. CCPs being subject to additional and unnecessary regulatory burdens and would undermine the terms of the 2016 CCP equivalency determination between the CFTC and the European Commission.

Mr. Quintenz said that the European Commission's proposed amendments to EMIR are a "clear breach and violation" of the 2016 agreement. Mr. Quintenz argued that it would be "foolish" for the EU to treat Brexit as a reason for "reneging on its agreement with the CFTC." Mr. Quintenz further said that he