EU Drafts No-Deal Brexit Plan to Avert Swap-Market Rupture

  • EU commision’s draft equivalence decision seen by Bloomberg
  • ISDA welcomes EU’s step to reduce financial-stability risks
May Has Avoided a 'Calamitous Vote,' Says Author Christopher Jackson
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The European Commission took a step toward meeting the financial industry’s demands for a so-called equivalence decision that would help prevent a derivatives-market rupture in a no-deal Brexit.

The decision drafted by policy makers in Brussels would ensure that London’s main clearinghouses -- units of London Stock Exchange Group Plc and Intercontinental Exchange Inc. as well as the London Metal Exchange -- could continue to serve clients in the European Union even in a disorderly divorce with no transition period.