In a report published this week, the Bank of England warned that Brexit poses “significant risks” to U.K. financial services companies, while also declaring publicly for the first time that LIBOR poses a financial stability risk.
In minutes published this week of its meeting on 20 September 2017, the Bank of England’s Financial Policy Committee (FPC), which is tasked with ensuring financial stability in the United Kingdom, concluded in its report that, “the United Kingdom was an important global hub for central clearing activity, and there remained significant risks from disruption to cross-border clearing activity between the U.K. and EU. Central counterparties (CCPs) located in the United Kingdom provided important services to EU clients across a range of markets.”
