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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
"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
