I am doing a case study on UK Derivatives. Below are some information on significant events and prospects. Can you come up with proper prospects, recommendations and opinions based on the information. Include APA in$-$text citations and the websites the info is sourced from.

Prospects $($what events happened, cause what rates to change, then what impact$)($P

Outlook $($Our opinion$)$

$($Types of Derivatives: options, futures, swaps, forwards $($similar future contracts$)-$ talk about it when we discuss factors affecting

Credit default swaps and forwards

Significant events: $($time$-$line historical events$)$

$2008$ Financial Crisis $-$ highlights systematic risks and need for regulatory reforms for OTC derivatives

Covid Pandemic $(2019-$present$)$

Cyber attacks $(2022-$ Ion Group$)$

Brexit $(2016/2020-$present$)$

Crypto Derivatives $(2023-$present$)($source$)$

Russian$-$Ukraine War $(2022-$Present$)->$ commodities, oil$/$gas

Prospects

Economic and regulatory influences $($brexit and global influences$)$

Brexit: The UK's exit from the European Union has reshaped the regulatory landscape for derivatives trading. Prior to Brexit, UK$-$based firms enjoyed passporting rights, allowing them to offer financial services across the EU without needing further authorization. Post$-$Brexit, these firms must navigate a patchwork of regulatory regimes, potentially limiting access to EU markets. This has implications for market liquidity and the competitive positioning of UK derivatives markets. Moreover, the UK has the opportunity to tailor its regulatory framework to enhance its attractiveness as a global financial hub, such as by adopting more flexible regulations for fintech and digital assets. The ongoing negotiations for equivalence decisions with the EU are pivotal, as they will determine the ease with which UK$-$based firms can access EU clients and vice versa.

Global Economic Factors: The derivatives market is highly sensitive to global economic conditions, including interest rate changes, inflation, and commodity price fluctuations. For example, the Bank of England's monetary policies, especially adjustments in interest rates to control inflation, directly impact the valuation of interest rate derivatives, a significant component of the UK market. Similarly, global commodity price volatility affects the valuation and trading strategies for commodity derivatives. The economic rebound post$-$COVID$-19,$ coupled with geopolitical tensions, has led to increased volatility in commodity prices, thereby influencing trading volumes and strategies in the derivatives market.

Technological advances $($fintech and blockchain$)$

Fintech and Blockchain: The adoption of fintech and blockchain technologies is revolutionising the derivatives market. Blockchain technology, with its inherent characteristics of transparency, security, and efficiency, is particularly suited to improving the clearing and settlement processes for derivatives trades. Smart contracts can automate the execution of contracts and the settlement of trades, reducing counterparty risks and operational costs. Fintech innovations are also enabling more sophisticated risk management tools and analytics, allowing traders and investors to better assess and hedge their exposures.

Sustainability trends $($growth of ESG$-$compliant derivatives$)$

ESG Derivatives: There is a growing demand for investment products that comply with environmental, social, and governance $($ESG$)$ criteria, reflecting a broader shift towards sustainable finance. This trend has led to the development of ESG derivatives, which allow market participants to hedge risks or gain exposure to ESG performance without directly investing in physical assets. For example, ESG futures and options on equity indexes enable investors to speculate on or hedge against the performance of companies with strong ESG credentials. Similarly, green bonds and climate$-$linked derivatives are emerging, allowing investors to manage risks associated with the transition to a low$-$carbon economy.