Derivatives Market Faces Challenges on Brexit, EU Regulator Says
- ESMA head Maijoor warns some London markets will be cut off
- Stand-off on rules could shift trillions of dollars in trades
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The European Union’s top markets regulator delivered a fresh warning that big European banks will face difficulties trading derivatives when they are locked out of London’s dominant trading platforms at the end of the Brexit transition this month.
Steven Maijoor, chair of the Paris-based European Securities and Markets Authority, said in an interview Thursday that the London offices of EU firms are headed into a “conflict of law” between the U.K. and Europe, affecting swaps on benchmark interest rates and credit defaults.