07.12.201813:45 Forex Analysis & Reviews: USA: Brexit threatens global finance market

The two largest US regulators, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), are concerned about the possible negative consequences of the exit of Britain from the European Union, which may affect the global financial market.

The SEC and CFTC called for the United Kingdom and the EU to ensure transparency and stability during Brexit in order to minimize risks for most financial companies. Representatives of both regulators believe that Brexit has influenced a number of US companies and investors. He believes that the risk to global markets has been underestimated.

According to Jay Clayton, head of the SEC, it will be difficult for the European Union and the UK to smooth out all the "roughness" of the transition period but it is necessary for long-term economic stability. Previously, Christopher Giancarlo, chairman of the CFTC, said about the possible instability in the global derivatives market amid Brexit. The Commodity Futures Trading Commission fears that changing the EU and UK rules on cross-border derivatives transactions will affect the global market for the worse.

Recall the following Tuesday, December 11, a discussion of the draft agreement between London and Brussels will be held in the House of Commons of Great Britain. At the same time, the vast majority of members of the Conservative Party do not support the plan of Prime Minister Theresa May. Many opposition representatives said they would oppose the deal.

Last week, the US Federal Reserve (FRS) voiced the position that Brexit without a deal is a short-term risk for America's financial system. The Fed believes that such a scenario would destroy the cross-border currency agreements and cast doubt on the financial prospects of the eurozone.