LONDON, Feb. 25 (Xinhua) -- The British and United States authorities announced an agreement Monday on the continuity of derivatives trading and clearing after Brexit.

The deal was struck between, on the one hand, the UK's main financial markets regulators the Financial Conduct Authority (FCA) and the Bank of England's (BoE) Prudential Regulation Authority (PRA) and on the other hand the U.S. Commodity Futures Trading Commission (CFTC).

The UK-U.S. agreement recognizes each other's regulations in the derivatives markets, in a move which will see regulatory bodies in each country jointly oversee the markets.

"London is, and London will remain, a key global centre for derivatives trading and clearing for a long time to come," said CFTC Chairman Christopher Giancarlo at a news briefing at the BoE's headquarters.

"These important measures... provide a bridge over Brexit through a durable regulatory framework upon which the thriving derivatives market between the UK and the U.S. may continue and endure," he added.

With just a few weeks to go until the formal date of Britain's exit from the European Union (EU) on March 29, the continued stable functioning of financial markets has become a concern for regulators, central banks, investors and businesses in many parts of the globe, not just Europe.

British and U.S. markets account for most of the global trade in derivatives. The deals are struck in venues and clearing houses, and examples of these based in Britain are ICE Clear Europe, LME Clear, which focuses on metals trading, and LCH.

At the moment derivatives trading in Britain follows agreements made by the EU.

The agreement between British and U.S. market regulators means that after Brexit, whenever it takes place, the regulators will carry over the existing agreements struck between the U.S. and the EU.

Mark Carney, governor of the Bank of England, said: "As host of the world's largest and most sophisticated derivative markets, the U.S. and UK have special responsibilities to keep their markets resilient, efficient and open. The measures we are announcing today will do that."

Philip Hammond, chancellor of the Exchequer, said: "The U.S. and UK are fundamental to the smooth functioning of the world's multi-trillion pound derivatives markets, with around 97 percent of the centrally cleared interest rate derivatives market located in London. The action we have taken today with our partners in the U.S. will ensure that markets can continue to thrive without disruption."