U.K. derivatives clearinghouses will face tighter post-Brexit scrutiny from European Union (EU) regulators if they want to keep doing business in the bloc under an agreement announced by EU negotiators on Wednesday.

EU negotiators reached a deal on legislation creating tools to inspect and demand changes at foreign firms to ensure they meet the bloc's oversight standards. The agreement caps a heated debate that erupted shortly after the Brexit referendum, a debate that was closely followed by U.S. regulators trying to fend off meddling by EU officials.

“Today's agreement is essential to achieve legal certainty on the rules that will apply in the future, in particular as regards the way firms based outside the EU will be able to operate in the single market,” Romanian Finance Minister Eugen Teodorovici, whose government currently holds the rotating EU presidency, said in a statement.

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