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, 2020at 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 PDF below to read the FAQs.
The Impact of a ‘No Deal Brexit’ webinar is available here.