The Bank of England has issued a blunt warning to European Union officials that £41tn of derivatives contracts are at risk from Brexit, unless Brussels acts to resolve the problem.

The alert has come at a time of major uncertainty for banks and other firms that clear their derivatives contracts in the UK. The issue at hand is that it would not be lawful for EU-based firms to access UK clearing houses — key market hubs that sit between parties to a trade to verify it — when the UK quits the bloc in March.