On 21 July 2020, the ISDA published version 8 of its Brexit FAQs.

The following FAQs have been updated to the position as at 30 June 2020 and therefore do not reflect any developments after that date:

  • Q16 – After IP completion day, what is the ability of financial services firms established in the UK to enter into OTC derivatives with counterparties established in the EU?
  • 1 – Will EU firms without a UK branch still be able to carry out derivatives business in the UK?
  • 2 – Will EU firms still be able to carry out derivatives business through a UK branch post-IP completion day?
  • Q17 – Will UK OTC derivative counterparties still be required to comply with the clearing, reporting and risk-mitigation requirements under EMIR?
  • Q18 – What are the consequences of IP completion day on the phase-in of the initial margin rules under EMIR?
  • Q20 – Will UK entities be able to satisfy any applicable UK clearing obligation by using an EU based CCP or the EMIR reporting obligation using an EU based trade repository?
  • Q21 – Are there any other issues in respect of the clearing obligation that members should consider?
  • Q22 – Will compliance with the UK onshored clearing rules in EMIR be sufficient as substituted compliance for Dodd-Frank clearing obligations?
  • Q30 – What is the process for transferring derivative transactions from an entity established in the UK to an entity established in the EU?
  • Q31 – Will any new arrangements be required to clear derivative transactions in the future?
  • Q32 – What is the impact of Brexit on use of an index which is considered to be a benchmark for the purposes of the European Benchmark Regulation?

All other FAQs remain the same as in the previous version.