US, UK Lawmakers Work To Protect Derivatives Contracts
United States and Britain stated on Monday that our regulators are taking combined efforts to secure trillion of dollars of traders from Brexit, which are placed in derivative contracts over the Atlantic Ocean. Mark Carney (Governor, Bank of England) said that market contributors have to be confident that the trade of derivatives between the USA and Britain is will maintain the top-notch standards as UK has left EU. Right now, trading in the United Kingdom is going on as per the norms of the European Union (a trading block), which the United Kingdom will leave on March 29.
Regulators from USA and UK has confirmed that trading market at London and New York will run under a similar set of rules after Brexit, as both of them are dominant aspects of the trading market while addressing the press on Monday. Only one month is left and it is yet not clear whether the United Kingdom will leave the EU with some transition deal or will leave bare handed without any deal. As per the steps were taken by Bank of England, US Commodity Future Trading Commission and the Financial Conduct Authority it is very sure that the US and UK derivatives will not be disrupted, no matter how hard the Brexit goes.
Derivatives are the hedges, used by companies to border their self in case any sudden move happens in borrowing costs from their raw materials. Cristopher Giancarlo, CFTC chairman said that the measure given is a bridge over the Brexit which will work on the Trans regulatory agenda which the prosperous Trans derivatives from Atlantic trading region may carry on and sustain. Adding some kind of thoughts, Philip Hammond (Britain’s Prime Minister) said that the trading measures are symbols of special relations shared among the two countries, United Kingdom and the USA.