ISDA has published a paper recommending that the EU and the UK recognize the equivalence of each other’s derivatives trading venues in order to mitigate the impact of the UK’s withdrawal from the EU. If appropriate equivalence decisions are not in place by the end of the transition period provided for in the Withdrawal Agreement between the EU and the UK (the transition period), there will be significant issues for counterparties subject to the derivatives trading obligation (DTO) and other requirements under derivatives legislation in both the EU and the UK. The lack of such equivalence decisions is also likely to exacerbate the fragmentation of liquidity in over-the-counter (OTC) derivatives markets between the EU and the UK resulting from Brexit.
The paper explains that equivalence is the best solution for addressing conflicts and avoiding such fragmentation, by setting out the limitations of the other mitigating actions that have been proposed in the event that equivalence is not granted.
Click on the attached PDF to read the letter in full.
Documents (1) for ISDA Analysis of the Impact of Brexit on the MIFID Derivatives Trading Obligation
Latest
Accounting for Tokenized Assets as Collateral
The use of tokenized assets as collateral for derivatives and securities financing transactions (SFTs) is emerging as a significant development in global capital markets. Financial institutions are increasingly evaluating tokenized representations of money market funds, government securities and other high-quality...
US Treasury Repo Clearing Indicator September 2026
The ISDA-Actrix US Treasury Repo Market Clearing Indicators illustrate central clearing adoption in the US Treasury repo market. Sponsored cleared repo volumes are used as a proxy to monitor client participation in central clearing, a key objective of the Securities...
CDM: User Journey from Concept to Production
The Common Domain Model (CDM) is a standardized, machine-readable and executable model for representing financial products, lifecycle events and contractual information. By providing an open source shared language across firms and platforms, it supports interoperability, automation, resource optimization and reduced...
ISDA DTF Tokyo Scott O'Malia Remarks
ISDA Derivatives Trading Forum Tokyo, October 23, 2026 Opening Remarks Scott O’Malia ISDA Chief Executive Good afternoon, and welcome to the ISDA Tokyo Derivatives Trading Forum. Thanks for joining us today, and a big thank you to our sponsors,...