LONDON (Reuters) – Britain’s markets watchdog said on Thursday it would allow UK market participants to use platforms in the European Union to trade swaps for up to three months in a bid to avoid potential disruption in markets.
Following Britain’s full withdrawal from the EU at 2300 GMT on Thursday, UK and EU market participants faced not being able to trade swaps with each other.
The Financial Conduct Authority said it would temporarily allow UK financial firms to use platforms in the bloc if they do not have arrangements in place to execute the trade elsewhere, such as in the United States.
“We will consider by 31 March 2021 whether market or regulatory developments warrant a review of our approach,” the FCA said in a statement.
(Reporting by Huw Jones; editing by Simon Jessop)
