The International Swaps and Derivatives Association, Inc. (ISDA) today published the following statement on the UK referendum vote to leave the European Union (EU), also known as Brexit.
“The UK referendum vote for the UK to leave the EU is a momentous decision and will have significant implications for financial markets. In light of the vote, ISDA is working with members to ensure the derivatives market is able to continue functioning safely and efficiently. 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.
“ISDA has conducted detailed analysis on the contractual implications of Brexit, and has highlighted a number of potential issues that counterparties will need to consider during the two-year negotiation period. Now the UK has voted to leave, ISDA will convene applicable working groups and hold a series of industry calls to ensure derivatives market participants are prepared.”
ISDA will hold a webinar call for members to discuss the implications of Brexit on Wednesday June 29 at 1415 BST.
The Association will also host a press briefing on Wednesday June 29 at 1530 BST.
Registration details for both calls will be circulated next week.
ISDA’s analysis on the contractual issues arising from Brexit is available here: http://www2.isda.org/functional-areas/legal-and-documentation/uk-brexit/
