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 January 31, 2020 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 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. In circumstances where the proposed withdrawal agreement is approved by the UK government and comes into force in both the UK and EU on or prior to 31 January 2020, such that the transition period set out in the withdrawal agreement is entered into, the earliest date on which a ‘no deal’ Brexit could take place is 31 December 2020.
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. The FAQs and webinar were prepared in October 2019 on the basis of the position on a ‘no deal’ Brexit as assessed at that time. It may be that, particularly in circumstances where the transition period under the withdrawal agreement is entered into, the key impacts of a ‘no deal’ Brexit are different to those outlined in the FAQs and webinar.
Click on the attached PDF to read the FAQs.
The Impact of a ‘No Deal Brexit’ webinar is available here.
Documents (1) for No-deal Brexit FAQs and Webinar
Latest
ISDA Market Practice Note for the Rebasing of European Inflation Indices
ISDA Market Practice Note for Rebasing of the: FRC - Excluding Tobacco-Non-Revised Consumer Price Index EUR - Excluding Tobacco-Non-revised Consumer Price Index ITL - Inflation for Blue Collar Workers and Employees-Excluding Tobacco Consumer Price Index SEK – Non-revised Consumer Price...
Guidance for EU IM Model Application for ISDA SIMM®
EU financial and non-financial EU counterparties exchanging IM based on ISDA SIMM® should have already submitted an initial application for authorisation to their competent authority (CA), and ECB if applicable. If not, they should do so timely to ensure continued...
Joint Response on Stress Testing Framework
On February 23, ISDA, the Bank Policy Institute, the American Bankers Association, the Financial Services Forum, the Securities Industry and Financial Markets Association and the US Chamber of Commerce jointly responded to the US Federal Reserve’s consultation on the stress...
Joint Letter on Italian 2026 Budget Law
On February 23, ISDA, the Association for Financial Markets in Europe and the International Securities Lending Association jointly sent a letter to the Italian tax authorities about changes to withholding tax on dividends made in the 2026 budget law, which...