A ‘no-deal’ Brexit (also known as a ‘hard’ Brexit) is the situation where the UK leaves the EU with no transitional arrangements (agreed between the UK and EU, as opposed to unilateral contingency measures) and without a trade arrangement or other deal with the EU.

The earliest date on which a ‘no deal’ Brexit could take place is October 31, 2019 at 11pm (UK time). A ‘no deal’ Brexit will not take place on this date if, prior to this date: (i) the proposed withdrawal agreement (with any amendments that may be agreed between the parties) is approved by the UK government and comes into force in both the UK and EU; (ii) the UK proposes (and the European Council agrees to) a further extension of the two-year withdrawal period set out in Article 50(3) of the Treaty of the European Union (TEU); or (iii) the UK revokes Article 50 TEU (it is possible that (i) would in any case require a further extension to provide time to obtain the necessary approvals and pass the required legislation).

Update (November 2019): Since the FAQs and webinar were published, the earliest date on which a ‘no deal’ Brexit could take place has been extended to 31 January 2020 at 11pm (UK time) (or, if a withdrawal agreement between the EU and UK is agreed and ratified by the relevant parliaments before that date, such that a transition period is entered into, at the end of December 2020). ISDA will consider whether to publish updated versions of the FAQs and/or webinar, depending on any developments with respect to the post-‘no deal’ Brexit position in the UK or EU, in due course.

The FAQs and webinar provide a high-level summary of the key impacts of a no-deal Brexit on the over-the-counter derivatives market and ISDA documentation.

Click on the PDF below to read the FAQs.

The Impact of a ‘No Deal Brexit’ webinar is available here.