, Columnist
A $364 Trillion Game of Brexit Chicken Gets Ugly
The U.K. and the European Union are locked in a derivatives standoff driven by politics rather than what's best for investors.
Will they know when to fold ’em?
Photographer: Jacob Kepler/BloombergThis article is for subscribers only.
Politicians in the European Union are fretting about how little time is left to strike a Brexit trade deal, with French Foreign Minister Jean-Yves Le Drian publicly bemoaning British foot-dragging this week. Now frustration has hit the once dull world of financial regulation, where the City of London and EU are locked in a staring contest over a big chunk of the $364 trillion interest-rate swap market.
One side should blink eventually, but it’s likely to get messy along the way.