The International Swaps and Derivatives Association (ISDA) has issued a statement concerning the result of the UK referendum on EU membership. In its statement the ISDA states:
“It is important to stress, however, that the UK vote to leave the EU will not have an immediate impact on the legal certainty of existing derivatives contracts, nor will it require any immediate contractual change or action from counterparties. Once the UK government serves formal notice of its intention to withdraw, the UK will continue to remain a member of the EU for at least two years. During that time, existing European treaties, directives and regulations will remain in force.”
The ISDA has also published a new web page on Brexit and its impact on the ISDA Master Agreement. The webpage covers the following issues:
- the choice of English law as the law governing the ISDA Master Agreement;
- the choice of English courts/arbitral tribunals as the dispute forum under an ISDA Master Agreement;
- bank resolution issues;
- insolvency issues; and
- collateral issues.
View ISDA statement on UK referendum vote for Brexit, 24 June 2016
View ISDA page – Brexit, 24 June 2016
