Brexit threatens some swaptions trades

Brexit-threat-to-physically-settled-swaptions

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

A limited number of swaptions may stop working if the UK leaves the European Union next year without a deal on cross-border financial services, potentially forcing them to be terminated and leaving one or both sides unhedged.

The issue arises for physically settled trades because they require a new interest rate swap to be issued at the point the swaption is exercised. If UK entities lose their right to enter into new financial transactions with EU clients after the March 2019 withdrawal

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact [email protected] to find out more.

You are currently unable to copy this content. Please contact [email protected] to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]