Brexit Contingency: Financial Clearing Exemptions

Summary

The European Parliament has decided not to object to new rules that provide temporary relief for financial contract transitions in the event of a 'no-deal' Brexit.
10 13.02.2019
Other
economy
european union
international relations
financial institutions and credit

Key points

  • The measures are part of a contingency action plan to prepare for a 'no-deal' Brexit scenario.
  • The regulation allows for a temporary exemption of certain transactions when a UK-based counterparty is replaced by an EU-27 counterparty.
  • This exemption for contract transitions is limited to a period of 12 months.
  • Parliament noted that because the Commission changed the original technical standards, a longer three-month scrutiny period is applicable.
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