J. Christopher Giancarlo, Chairman of the Commodity Futures Trading Commission, said in speeches delivered last week in two European locations that the European Commission should not amend its regulatory framework for the recognition of clearinghouses (CCPs) under the European Market Infrastructure Regulation, as recently proposed, to potentially exercise direct oversight over third-country CCPs, including those potentially in the US. He said that when the current equivalence agreement was previously negotiated “[w]e got it right,” and it should not be unilaterally changed now. In general, Mr. Giancarlo argued that each home jurisdiction regulator should have primary oversight over its domestic CCPs to which foreign regulators should defer. “Such deference should be underpinned by a robust, outcomes-based comparability assessment of the consistency of the home regulator’s relevant regulations and supervisory program,” Mr. Giancarlo said. In June, apparently as a reaction to Brexit, the EC proposed measures that would substantially amend its process for the approval of CCPs operated outside the EU that provided services in the EU. (Click here for background in the article “EC Proposes Two-Tier System for Classifying Third-Country CCPs; Certain Systemically Important CCPs May Be Required to Relocate to the EU” in the June 18, 2017 edition of Bridging the Week. Click here for background regarding the equivalency agreement between the EU and CFTC agreed in February 2016 in the article “Common Approach to Transatlantic CCPs Finally Agreed by EC and CFTC” in the February 14, 2016 edition of Bridging the Week.)