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 the importance of deference in regulation and supervision where appropriate," the BoE added.
Clearing houses, also known as central counterparties, ensure a transaction is completed even if one side of a stock, bond or derivatives trade goes bust. They form a critical part of a market's plumbing and include companies such as ICE and London Stock Exchange Group's LCH, which operate globally.
The BoE has had a thornier relationship with euro zone financial regulators, which have long resented London's dominance of euro derivatives clearing activity, and ties have become more strained since Britain left the European Union.
Last year the EU
widened access for U.S. exchanges and clearing houses to investors in the bloc, a move that contrasts with Brussels' intention to shut off clearing houses in London in 2025.
Since Brexit, the EU has largely refused to class
British financial regulation as being of an equivalent standard
to that in the EU - in contrast to its assessment of similar
rules in the United States, China, Japan and Canada.
(Reporting by David Milliken, editing by Andy Bruce and Paul
Simao)
