The impact of a no-deal Brexit on derivatives entered into by UK buy-side entities

  • United Kingdom
  • 01/31/2019
  • Eversheds-Sutherland

31-01-2019

In this briefing we summarise the framework that will apply to derivatives in a no-deal scenario and some of the steps buy-side entities can take to plan for this.

Application of EMIR requirements following a no-deal
Following Brexit, EMIR will no longer apply directly in the UK and will cease to apply directly to UK buy-side entities.

The UK will onshore EMIR requirements (“Onshored EMIR”) under the European Union (Withdrawal) Act 2018 (the “Withdrawal Act”). The Withdrawal Act preserves existing UK domestic legislation which implements EU Directives and provides for the incorporation of directly applicable EU Regulations, so far as operative immediately before exit day, into UK law on the date of withdrawal. Ministers have powers to make statutory instruments amending UK law to remedy deficiencies in the onshored EU legislation arising from Brexit.(continue)

Read full text at https://www.eversheds-sutherland.com/global/en/what/articles/index.page?ArticleID=en/Financial_services/no-deal-brexit-derivatives-310119