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U.K.'s Alarm on $127 Trillion of Derivatives Rebuffed by EU

  • Dombrovskis sees no broad Brexit threat to financial contracts
  • Banks should prepare to fix any contract problems, EU says
U.K. GDP Gain Means Only Politics Can Halt BOE Rate Hike
Photographer: Simon Dawson/Bloomberg
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The Bank of England’s warning that Brexit threatens trillions of pounds of financial contracts is falling on deaf ears in Brussels.

Valdis Dombrovskis, the European Union’s head of financial-services policy, dismissed an alert issued by BOE Governor Mark Carney, who said the U.K.’s withdrawal from the bloc put as much as 96 trillion pounds ($127 trillion) of derivatives contracts at risk. Where Carney called for U.K. and EU authorities to step in, Dombrovskis said the onus is on firms to Brexit-proof existing contracts.