ARTICLE
26 November 2018

ISDA Assesses "Hard Brexit" Impact For U.S. Market Participants

CW
Cadwalader, Wickersham & Taft LLP

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
ISDA analyzed the impact of a "hard" Brexit (where the UK leaves both the European Union and the European Economic Area) on U.S. swap market participants.
United States Finance and Banking

ISDA analyzed the impact of a "hard" Brexit (where the UK leaves both the European Union and the European Economic Area) on U.S. swap market participants.

A table published by ISDA addresses whether a hard Brexit would affect the ability of UK firms to rely on various CFTC no-action letters. ISDA identified four types of no-action letters that it assumes would continue to be available even in the event of a hard Brexit, as the letters generally are available to all non-U.S. firms. In addition, the table describes various comparability exemptions that the CFTC has granted to firms subject to EU requirements and notes that Brexit would require the CFTC to clarify whether and how these exemptions apply to firms subject to UK laws.

Generally, ISDA cautioned that the relationship between the UK and the EU will have an impact on U.S. market participants, including where a U.S. financial institution has a UK subsidiary.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More