Pound extends gains on new post-Brexit transition time for swaps trading
LONDON (Reuters) - Sterling extended gains on Thursday, rising as much as 0.6% versus the euro after news that trading platforms in the European Union can be used by UK market participants for up to three more months to avoid disruption to swaps trading.
By 1045 GMT, the pound was trading at 89.79 pence, having hit a session high of 89.76 pence. It touched a new 2-1/2 year high to the dollar at $1.3686, a 0.4% gain on the day.
While the Brexit trade deal agreed on Christmas Eve set rules for industries such as fishing and agriculture, it did not cover Britain’s finance sector, leading to fears that swaps trading worth $200 billion could be disrupted next week.
But Britain’s markets watchdog said on Thursday UK market participants could use EU platforms to trade swaps for up to three months to avoid potential disruption in markets.
Reporting by Sujata Rao; Editing by Tommy Wilkes
Our Standards: The Thomson Reuters Trust Principles.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.