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Brexit

Brexit planning could soon restart

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.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.

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