France wants European Union regulators to have a veto over how Britain supervises UK-based clearing houses of euro denominated transactions after Brexit, EU sources said.
The EU’s executive European Commission proposed a draft law in June that sketches out a system of joint supervision of “systemic” clearing houses outside the bloc that handle large amounts of derivatives and other contracts traded in euros.
Officials from the bloc’s member states meet next week to begin the approval process for the draft law, and the two biggest states, Germany and France want tougher measures than what’s been proposed so far, EU sources with knowledge of the meeting said.
Each member state was asked to give their views on the draft law, and France has said it wants the ability of the ECB to impose extra requirements on non-EU clearing houses to be given to the European Commission and to the bloc’s European Securities and Markets Authority (ESMA) as well, the sources said.
France wants them to “have a say, up to a veto right if needed” on some decisions taken by non-EU authorities, if those decisions go against the bloc’s interests, the sources added.
Source: Reuters (Reporting by Huw Jones, editing by Rachel Armstrong)