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When market makers start sending runs based on nation states rather than sectors it may be a harbinger of fundamental change in how European credit is traded.

That is precisely what we are seeing as the Brexit process descended into chaos. A number of UK cabinet members have resigned in protest at Theresa May’s draft EU withdrawal agreement, quashing hopes that it would bring certainty and stability to markets. Instead, dealers are now distributing ‘Brexit’ runs and sending quote messages classified by country, not sector. Perhaps this signals the start of a decoupling of the UK from other EU members.