Rep. Stephen Lynch (D-Mass.) said his amendment to limit bank ownership of derivative clearing houses would apply only to new firms. Existing clearers such as LCH.Clearnet and Tradeweb would not be affected, according to Lynch “They don’t have to change their business form to adhere to this amendment,” said Lynch, referring to his proposal that would cap bank ownership to 20% of a clearinghouse. “We want these clearinghouses to operate for the benefit of the market and the wider financial system.” The Massachusetts lawmaker is expected to reintroduce the measure on the floor of the House of Representatives after it was withdrawn from the Financial Services Committee’s bill because of a technical error. Opponents of the provision, including the banking industry and companies such as NYSE Euronext, said the legislation is anti-competitive.

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