On November 6, 2017, Commodity Futures Trading Commission Chairman J. Christopher Giancarlo authored an opinion piece in the Wall Street Journal warning of potential consequences if the European Union mishandles Britain's impending exit from the EU. The European Commission's proposed amendments to the European Market Infrastructure Regulation and the regulation establishing the European Securities and Markets Authority would provide ESMA and the ECB with greater supervisory powers over third-country CCPs. Specifically, Chairman Giancarlo argued that the European Commission's proposed rulemaking that would authorize regulation of financial entities outside the EU by the ECB and ESMA would result in overlapping and uncoordinated regulation in US financial markets. Chairman Giancarlo believes this lack of harmonization and clear jurisdictional limitations could prove expensive and damaging to US economic growth and ultimately impact job growth. Additionally, Chairman Giancarlo suggests that submitting to European rules could set a dangerous precedent going forward which could result in further imposition of European costs and regulatory burdens on the US economy.
The article is available at: http://www.cftc.gov/PressRoom/SpeechesTestimony/giancarloopinion110617.
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