November 1, 2017 / 12:01 PM / a year ago

Bank of England's Cunliffe sees limits to EU supervision of clearing houses

Britain's Deputy Governor of the Bank of England Jon Cunliffe speaks during the Bank of England's financial stability report at the Bank of England in the City of London, Britain June 27, 2017. REUTERS/ Jonathan Brady/Pool

LONDON (Reuters) - European Union proposals to supervise foreign clearing houses must not end with “multiple hands on the steering wheel”, Bank of England Deputy Governor Jon Cunliffe said on Wednesday.

The bloc wants joint supervision of clearing houses that handle large amounts of euro-denominated financial transactions after Britain leaves the EU in March 2019.

Cunliffe said cooperation between regulators from different countries was necessary, but “deference” to British authorities would be needed, as seen in relations between the United States and British regulators.

“You have to make sure you don’t end up with multiple hands on the steering wheel and multiple feet on the brake,” Cunliffe told a House of Lords committee studying the effect of Brexit on financial regulation.

Reporting by Huw Jones, editing by David Milliken

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