FMLC: Robustness of Financial Contracts after Brexit08.08.2018
Since the U.K. voted to withdraw from the E.U., a question which has been raised by many market participants and observers, in the context of a hard Brexit, is whether the performance of existing financial contracts would continue or whether Brexit would make their performance illegal, impractical or impossible in some way.
This paper takes an in-depth look at the question of the continuity of legacy contracts and highlights the legal uncertainty which will arise if there is no clarity as to the future of the U.K.-E.U. relationship post-Brexit.
The Financial Markets Law Committee, an educational charity based in the City of London dedicated to the sound administration of financial law, also examined some of the ways by which these issues might be mitigated, both by firms themselves and through legislative action.
Review of trading desks found that incoming banks did not yet retain full control of their balance sheets.
UK has a greater market share than pre-Brexit for on-venue execution of GBP interest rate swaps.
Recognition has been temporarily extended until 30 June 2025.
The trade repository has been providing UK services since the first business day after Brexit on 4 Jan 2021.
European firms could operate temporarily in the UK after Brexit while seeking full authorisation.