The UK's derivatives market must be protected from the risk of financial disruption after Brexit, the Bank of England (BoE) has said, with the fate of £20tn ($27tn) of contracts at stake. Central bankers are "exploring actions" to help financial companies offset derivatives risks after the UK pulls out of the European Union, the BoE said. In a speech in London on Wednesday, Governor Mark Carney said that while he was not ruling out an extension of emergency liquidity support for banks, it would depend on what happens next.
The UK's derivatives market must be protected from the risk of financial disruption after Brexit, the Bank of England (BoE) has said, with the fate of £20tn ($27tn) of contracts at stake. Central bankers are "exploring actions" to help financial companies offset derivatives risks after the UK pulls out of the European Union, the BoE said. It has urged special arrangements be made in any Brexit agreement to protect the thousands of contracts between UK investors and counterparties in the remaining 27 EU countries.