Brexit’s Impact on Derivative Contracts
On the heels of a historic and heated election, The UK announced it will be formally leaving the European Union as ofJanuary 31, 2020. Despite the landslide victory led by British Prime Minster Boris Johnson’s Conservative Party, there are still many obstacles to overcome before a withdrawal from the EU is finalized. Nevertheless, investors and financial analysts have many concerns about the impact Brexit willhave on the derivatives industry, including fragmented markets and liquidity shortfalls.