This paper highlights the issues that must be addressed in the case of a ‘hard’ Brexit. Specifically, it:

• Identifies exiting US Commodity Futures Trading Commission (CFTC) equivalence determinations and no-action relief that is currently provided to the European Union (EU) and should be extended to entities registered with the CFTC in order to preserve continuity and market stability once the UK exits the EU.
• Analyzes the impact of a hard Brexit on US market participants, and where appropriate, proposes regulatory and contractual solutions to minimize any negative impacts a hard Brexit would have on US market participants.

We note that Brexit discussions are ongoing and, based on developments, the regulatory and contractual approaches may change.

Click on the PDF link below to read the full document.