The Futures Industry Association (FIA) has published a white paper entitled ‘The impact of a no-deal Brexit on the cleared derivatives industry’.
FIA makes several key recommendations in the white paper. Among these recommendations, FIA strongly encourages the UK and EU27 to agree to a transitional arrangement comprised of a standstill period and a two-year adaptation period. The standstill period is necessary so as to mitigate the cliff-edge effect of a no-deal. However, such standstill period is insufficient on its own. Given the significant volume of adjustments required, an adaptation period of at least two years is needed to provide the industry with sufficient time to adjust business models to future UK and EU27 regulatory regimes.