Daily Management Review

US watchdogs warn against risks of Brexit for global markets


12/07/2018


Two US regulators called on the UK and the European Union to ensure transparency and stability when the kingdom leaves the bloc in order to minimize negative consequences for financial companies and markets, reports Reuters.



dullhunk
dullhunk
The Chairs of the Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC) separately stated that Brexit is already having an impact on some US companies and investors, and that the risk to global markets has been underestimated.

"The potential adverse effects of Brexit are not well understood, and in areas where they are understood, they are underestimated," said SEC head Jay Clayton, speaking in New York.

He added that for the EU and the UK authorities it would be a “difficult task” to provide a way that would minimize disruptions and costs if they do not agree on a transition period focused on broad and long-term economic stability.

CFTC Chairman Christopher Giancarlo said earlier on Thursday that uncertainty about Brexit could create instability in the global derivatives market. He called on the EU and the UK to agree on conditions “in such a way as to provide sufficient legal and regulatory certainty” for the markets.

The CFTC fears that changing the EU and UK regulations on cross-border derivatives transactions after Brexit may have implications for the global market, since the British clearing houses also operate in the United States and Asia.

On December 11, a discussion of the draft agreement between London and Brussels is to take place in the House of Commons of Great Britain.

Meanwhile, a significant number of members of the Conservative Party are opposed to the plan of Prime Minister Theresa May, including some Brexit supporters. Lawmakers in the opposition basically said they would vote against the deal.

Last week, the Federal Reserve announced that Brexit without a deal represents a short-term risk to the US financial system, because such a scenario would violate cross-border financial service agreements and could undermine confidence in the fiscal and financial prospects of the eurozone.

source: bloomberg.com






Science & Technology

New Security Study Finds Millions Use 123456 As Password For Email Accounts

The Devastating Panama Disease Could Spell Extinction For Bananas

Walmart to hire 4 thousand robot cleaners

Samsung Galaxy Fold: Expensive but fragile

USA and South Korea launch the first commercial 5G networks

Deliveries of AR/VR devices to grow by 54% in 2019

Anti-Stall System Got Activated Before Crash In The Ethiopian 737 MAX Craft: Reuters

Google’s Global Council To Advocate On AI Ethics

US wants to send astronauts to the moon by 2024

Apple shows new entertainment services

World Politics

World & Politics

Foxconn Head Gou Could Run For Taiwan President Election Next January

France opposes EU-US trade negotiations

United States and China to implement trade agreement

Norway's largest party to ban oil production near Lofoten Islands

Estonia's euroskeptics are about to join the government

Eastern Europe wins in double food standards fight

White House Received New Sanctions’ Package For Russia: Bloomberg

EU will stop saving migrants in the Mediterranean