Derivatives consider US, UK and EU equivalence in post-Brexit world

Author: John Crabb | Published: 11 Mar 2019

Regulators in the US and UK have announced their intentions to maintain regulatory clarity in the derivatives sector between the two powers following the UK’s potential exit from the European Union at the tail-end of this month.The US Commodity Futures Trading Commission (CFTC) and the Bank of England (BoE), together with the Prudential Regulation Authority and Financial Conduct Authority (FCA), announced that the UK will continue to enjoy the regulatory equivalence relief currently offered to EU firms meeting certain criteria following the divorce.The three agencies also announced continued supervisory cooperation, and UK equivalence measures for US trading venues and firms providing services in the UK. These measures are to be taken irrespective of how Brexit unfolds – deal or no deal. "To my mind London is, and will remain, a critical global centre for derivatives trading and clearing," said CTFC chairman Christopher Giancarlo at last week’s DerivCon conference. "The complex and...