FIA welcomes the European Commission’s decision to allow EU27 firms temporary continued access to UK clearinghouses, as confirmed by Commission Vice President Valdis Dombrovskis. Such a move means that firms will be able to continue to clear their derivatives on UK CCPs even in the event of a no-deal Brexit.
Walt Lukken, President and CEO of FIA said: “This move provides reassurance during a period of uncertainty for participants of Europe’s derivatives markets. Our members, which include key EU27 clearing firms, have been discussing the need for such a step with European policymakers to provide continuity of access and prevent market instability. However, other issues remain to be resolved, particularly in regard to continued access to other financial market infrastructures such as trading venues and trade repositories, for which similar reassurance is required. We look forward to further clarification of EU contingency plans in the event of a no-deal Brexit, both at a pan-European and national levels.”