EU Contingency Action Plan should cover UK Regulated Markets
Deutsches Aktieninstitut together with BDI, BDEW, EFET, Energy UK, Eurelectric, IOGP and VCI welcomes very much the EU Commission’s Communication of 13 November 2018 on Brexit Preparedness. Especially, they appreciate that the EU Commission states that it will soon adopt temporary equivalence decisions in order to ensure that there will be no disruption in central clearing and depositaries services. This is an important measure but they wish to raise a concern that the EU Commission’s Communication does not make reference to UK Regulated Markets (Exchanges). However, real-economy firms rely on liquid commodity trading markets to effectively hedge their commodity price risks. Therefore, the associations deem it important that in a no-deal Brexit scenario, the EU Commission explicitly includes the recognition of UK Regulated Markets under EMIR in its Contingency Action Plan in order to avoid serious risk management issues and additional costly EMIR obligations for EU non-financial companies.