Derivatives can seem far removed from the everyday concerns of households and businesses, but they're essential. Derivatives allow our pension funds and insurance companies to manage interest rate and inflation risk so that those safety nets can be there when we need them. They help our banks in building societies, manage interest rate risks on loans and mortgages, lowering borrowing costs for borrowers.
And as host to the world's largest and most sophisticated derivatives markets, the US and the UK have special responsibilities to keep these markets resilient, efficient, and open. And the measures we're announcing today do just that. Market participants can be confident that the clearing and trading of derivatives between the US and the UK will maintain today's high standards, whatever form Brexit takes.