(Bloomberg) — The U.K.’s two financial regulators urged the industry to finish final preparations for a potentially messy no-deal Brexit.
With negotiations between the U.K. and European Union still facing roadblocks, the Bank of England and Financial Conduct Authority urged finance executives to take further steps to make sure U.K. firms can continue trading stocks and derivatives easily with EU clients.
“Market volatility and disruption to financial services, particularly to EU-based clients, could arise,” the authorities wrote.
While many large clients have done the necessary work to shift derivatives contracts to banks’ EU divisions, there is still work left to do, according to the letter to executives. A last-minute move could create operational risks and “could also amplify any existing market volatility.”
The regulators also want firms to give customers ample notice if their service might be cut off or reduced once the Brexit transition period ends on Dec. 31.
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