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$2 Trillion dollar agreement signed between UK and US
The agreement seeks to safeguard Transatlantic markets whatever the Brexit outcome
It was announced earlier today (Feb 25) that an agreement has been signed between the US and the UK to safeguard Transatlantic markets in deriatives regardless of the outcome of Brexit negotations.
The announcement follows other recent post-Brexit agreements aimed at protecting Transatlantic trade between the UK and US. As the measures were announced, J. Christopher Giancarlo, Chairman of the US Commodity Futures Trading Commission (CFTC), explained that the measures "provide a bridge over Brexit through a durable regulatory framework upon which the thriving derivatives market between the United Kingdom and the United States may continue and endure". He also said that "London is, and will remain, a global center for derivatives trading and clearing."
Chairman of the Bank of England, Mark Carney, commented that "Derivatives can seem far removed from the everyday concerns of households and businesses, but they are essential for everyone to save and invest with confidence ... As host of the world’s largest and most sophisticated derivative markets, the US and UK have special responsibilities to keep their markets resilient, efficient and open. The measures we are announcing today will do that. Market participants can be confident that the clearing and trading of derivatives between the UK and US will maintain the high standards of today when the UK leaves the EU."
The UK's Chancellor of the Exchequer, Philip Hammond, also described the agreement as "yet another example of the special relationship between our two countries." Amidst a report from UK newspaper The Daily Mail that the US Ambassador to the UK, Woody Johnson, may be scheduled to meet with Her Majesty the Queen, it does appear that the Special Relationship between the US and the UK is stronger than ever.
Full details of the US/UK Agreement on derivatives can be found via the CFTC website: https://www.cftc.gov/PressRoom/PressReleases/7876-19