On December 9, ISDA and seven other trades associations (the Association for Financial Markets in Europe, the Alternative Investment Management Association, the European Banking Federation, Electronic Debt Markets Association Europe, the European Venues and Intermediaries’ Association, FIA and the asset management group of the Securities Industry and Financial Markets Association) sent a letter requesting that the European Commission recognize the equivalence of UK trading venues for the purposes of the derivatives trading obligation before the end of the Brexit transition period.

ISDA and seven other trade associations have sent a letter to @EU_Commission requesting equivalence for UK trading venues before the end of the #Brexit transition period @AFME_EU, @AIMA_org, @EBFeu, EDMA Europe, @FIAconnect, @EVIA_org, @SIFMA AMGhttps://t.co/BekXxljU7p

— ISDA (@ISDA) December 10, 2020

Otherwise, the long-term consequences for use of market infrastructure are uncertain.

Without trading venue equivalence, the only way an EU and UK firm could trade derivatives subject to both the EU and UK derivatives trading obligations would be to trade on a US SEF. This will result in operational costs and complexity for end usershttps://t.co/0FlVI5wDfW

— ISDA (@ISDA) December 10, 2020

Source: ISDA