Brexit drama muddies water for FX options market

Traders focusing on new dates – and scenarios – after domestic UK criticism of proposed deal

Brexit unertainty

Foreign exchange options traders are revising their Brexit strategies and positions after recent political ructions caught them unawares. Fierce domestic opposition to the proposed terms of the UK’s withdrawal from the European Union sparked a three-day, 30% surge in sterling-US dollar volatility last week – and is now forcing the market to consider a wider range of outcomes, dealers say.

The proposed agreement was published late on November 14, after being agreed by UK prime minister Theresa

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: