Britain backtracks over Brexit curbs on cross-border swaps trading

Date:

London, Dec. 31, 2020 Britain’s markets watchdog said on Thursday it would allow the UK market participants to use platforms in the European Union to trade swaps for up to three months.

Thank you for reading this post, don't forget to subscribe!

The move is in a bid to avoid potential disruption in markets.

Following Britain’s full withdrawal from the EU at 2300 GMT on Thursday, the UK and EU market participants faced not being able to trade swaps worth billions of euros with each other when markets reopened on Jan. 4.

Branches of EU banks in London would have been particularly hit.

Faced with the EU’s refusal to lift its ban on trading swaps in London, the Financial Conduct Authority said, on Thursday, it would temporarily allow the UK financial firms to use platforms in the bloc if they do not have arrangements in place to execute the trade elsewhere, such as in the U.S.

“We will consider by 31 March 2021 whether market or regulatory developments warrant a review of our approach,’’ the FCA said in a statement.

The move means that some swaps trading is likely to leave the City of London for EU platforms from next Monday.

It comes after the Bank of England had warned that interest rate swaps worth around $200 billion could be disrupted due to the clash between the UK and EU swaps rules, known as the derivatives trading obligation or DTO.

Britain had already taken a similar decision for euro-denominated shares by allowing the UK banks and investment firms to use EU platforms from Monday given that trading is set to move to the bloc.

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

Share post:

Subscribe

Popular

More like this
Related

Access Holdings to pay N1.80 as final dividend to shareholder

March 28, 2024. Azonuchechi Chukwu. Access Holdings has revealed plans to...

Police gun down two notorious bandits in Benue

March 28, 2024. Azonuchechi Chukwu. Men of Operation Zenda, a Joint...

Army declares eight wanted in connection with the k!lling of its officers in Okuama

March 28, 2024. Azonuchechi Chukwu. The Nigerian Army has declared eight...

Naira Appreciates Against Dollar at the NAFEM Window

March 28, 2024. Azonuchechi Chukwu. The Naira’s euphoric appreciation against the...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading