The European Union (EU) member states’ national regulators will be authorizing foreign clearing houses to operate in the region, Financial Times reports. As per the U.K.-German intervention on the European Market Infrastructure Regulation (Emir), the power to authorize the operations of clearers will remain with national regulators and not move to the new Paris-based watchdog, European Securities and Markets Authority.

The amendment comes as per a chapter of Emir dealing with “relations with third countries.” The document states that a central counterparty (CCP) set up in a third country may provide clearing services to members and their clients in the Union only where that CCP is recognized by the authority of a Member State in which a CCP intends to provide clearing services or activities.

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