J. Christopher Giancarlo, head of the US Commodity Futures Trading Commission, warned that a disorderly Brexit could harm US and international financial stability by throwing existing cross-border derivative contracts into doubt.
“I’m concerned Brexit could have a systemic risk impact on the world economy if there’s not a clear resolution of it,” he told the House Agriculture Committee last week. “It’s important for American officials to stay out. But we do have our own markets to be concerned about.”
Giancarlo cited a recent Bank of England report in contending that derivative contracts between UK and EU firms could be “void or voidable” soon after the UK's exit from the EU occur next March. Many of those contracts expose firms to US dollar and interest rate changes, he said.
CFTC’s Giancarlo sounds alarm on potential Brexit impact on US, global stability
30 July 2018 9:19pm