BoE warns on Brexit's £12trn swaps headache

摘要

The bank of England has called on Britain and EU states to legislate to protect the long-term servicing of derivatives contracts whose legal status becomes unclear once the UK exits the bloc in March 2019. In its Financial Stability Report, the UK central bank said around €12trn of derivatives contracts held between UK and EU counterparties that are set to mature following the departure date would be affected by a loss of passporting rights. "Financial companies are assessing whether they can service contracts using local exemptions or permissions at exit," said the BoE in its report, noting local authorisation needs vary across jurisdictions.