With a new leadership in the UK promising that the country will leave the EU on the 31st October, with or without a deal” (see here on Sky News for example), planning that slowed down when the UK failed to leave on the 12th April (see here) may soon restart.
ISDA recently updated their “Brexit FAQs”, which can be found here. They cover contractual points around ISDA documentation, choice of law, jurisdiction and recognition of judgements, access to the EU financial markets (including topics related to whether a physical commodities trade would be a “Financial Instrument”, as well as the Emissions Trading Scheme ), EMIR, Trade Repositories and other topics.
This story on the Reuters web site reports that the EU is considering revoking equivalence status for credit rating agencies in Australia, Brazil, Singapore and Argentina due to lack of alignment with EU rules. This is seen as a possible precedent for Brexit. This follows a loss of equivalence for Swiss venues at the end of June (for example see here on the BBC web site).
The UK government has announced that in the event of a no deal Brexit, a carbon tax of £16 per tonne would start from 4th November. The policy is reported here on the Euro News web site.
The UK Government also ran a consultation on the future of the Emissions Trading Scheme and UK carbon pricing in general (see here). EFET and Europex issued this press release on the day that the consultation closed. EFET run a “Brexit ID” platform that helps to identify necessary changes for energy market participants (see here).
As the policies around Brexit become clearer over the coming weeks, we can expect preparations for Brexit to re occupy more of market participants’ time.