April 18, 2018 / 1:59 PM / a year ago

BoE's Brazier says now surer of dodging Brexit hit to derivatives

LONDON, April 18 (Reuters) - The Bank of England is becoming more confident that it can avoid disruption to trillions of pounds in cross-border financial contracts after Brexit, a senior BoE official said on Wednesday.

Britain’s departure from the European Union next year could make it hard to enforce cross-border derivatives contracts used by companies to guard against adverse moves in interest rates or raw material costs.

Alex Brazier, the Bank’s director of financial stability strategy and risk, said action by Britain and the EU was needed to ensure contract continuity.

“I have every confidence that will happen by the end,” Brazier told parliament’s Treasury Committee.

He spoke with the European Central Bank on the issue this week.

“I do know they share our analysis of the issues and are examining them as much as we are,” Brazier said.

Brazier said Britain’s main banks hold enough capital to deal with any fallout from Brexit. (Reporting by Huw Jones and Andy Bruce, editing by David Milliken)

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