Deals
Brexit Blows Up Currency Derivatives Sold to U.K. Companies
- Sterling crash turned some currency derivatives toxic
- Losses prompted jump in misselling claims, lawyers say
Did Brexit Turn the Derivatives Market Toxic?
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For eight years, TTT Moneycorp Ltd. regularly took Dariusz Suchicki to dinner and soccer matches, all while selling him, as the head of finance of a U.K.-based importer of Polish foods, a series of complex currency derivatives.
When the pound started moving sharply against the zloty, those instruments became toxic: They began costing Suchicki’s company, Best Foods, tens of thousands of pounds a month, the company said in court filings last year. Now, as Britain prepares for Brexit, blow-ups of this type of complex financial instrument are surging.