Britain Budges on Derivatives in Last-Minute Brexit Relief
- London offices of EU banks allowed to make some trades in bloc
- Financial Conduct Authority will review its decision in March
London-based branches of European investment banks such as Societe Generale SA will be permitted to trade on EU venues, as long as they are trading for EU clients.
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Britain’s market watchdog eased restrictions on cross-border derivatives trading in a move to calm fears of market turbulence just hours before the Brexit transition period ends.
The Financial Conduct Authority said Thursday it acted to resolve conflicting European Union and U.K. laws that threatened a $200 billion-a-day market in London for interest-rate swap trades. London-based branches of European investment banks such as Deutsche Bank AG and Societe Generale SA will be permitted to trade on EU venues, as long as they are trading for EU clients.