By David Milliken
LONDON (Reuters) -The Bank of England said on Friday it would rely on a key U.S. regulator’s assessment of U.S.-based central counterparties (CCPs) which clear financial trades in Britain, in order to reduce duplication of work by supervisors.
The BoE signed an agreement with the U.S. Commodities and Futures Trading Commission (CFTC) in 2020 to share information, and Friday’s announcement will partially outsource the regulation of U.S. clearing houses which operate in Britain.
The central bank said it had deemed CFTC regulation to be of an equivalent standard to its own.
“The outcome of this assessment enables the Bank to place reliance on the CFTC’s supervision and oversight of incoming CCPs based in the US,” it said.
“The Bank and the CFTC have a longstanding relationship of cooperation and mutual understanding with respect to the supervision and oversight of cross-border CCPs, and recognise…
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