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

Financial giants and US government turn to quantum computers

Long Way To Go For Coronavirus Vaccine, Say Drgumakers

Google's subsidiary launches recognition service for photoshopped images

Unapproved Drug For Coronavirus Treatment And Testing Given By Gilead Sciences

Live Facial Recognition Cameras Will Be Used By London Police

Driverless Vehicle For Its Ride-Sharing Service Unveiled By GM’s Cruise

Amazon will allow customers to pay with palms instead of cards

Complete Computer System For Self Driving Cars Launched By Qualcomm

In A Lifetime We Could Accumulate 20Kg Micro-Plastic In Our Body

Creator Of The First 'Gene-Edited' Babies Of The World Gets 3 Year Jail Term In China

World Politics

World & Politics

Ex-head of Mexican Pemex will be transferred to Madrid prison

China Releases First Detailed Study Of Coronaviurs Attack, Finds Elderly At Most Risk

EBA Finds Alarming Compliance Results For Gender Diversity Among Banks

Record high temperature observed in Antarctica

Venezuela to initiate international litigation against USA because of sanctions

Coronavirus Death Toll 204 In China, US Asks Americans Not To Go China

Hong Kong protesters block railway to mainland

Heavy rain kills 47 people in southeast Brazil