Brexit drives swaps trading to US platforms
Lack of equivalence forces dealers to shift euro and sterling swaps out of European and UK venues
Up to 50% of euro and sterling interest rate swaps trading has moved from European and UK venues to platforms in the US since the start of the year, in Brexit’s latest impact on derivatives markets, sources report.
The UK’s transition period with the European Union ended on December 31 without an equivalence arrangement for large parts of the financial services industry. As a result, EU and UK
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