German Brexit-Steuerbegleitgesetz should also cover new business (in German)
Deutsches Aktieninstitut and The Association of German Chambers of Commerce and Industry (DIHK) commented on the proposal for the German Brexit-Steuerbegleitgesetz. They welcome that the provisions include a transition period for existing and directly linked business. Yet, the regulation falls short of the needs of business. In order to avoid a negative impact on the risk hedging of nonfinancial companies, the provisions should also inlcude new derivatives business. Moreover, they point out that the EU contingency measures do not make reference to UK Regulated Markets (Exchanges). This creates further problems for nonfinancial companies trading commodity derivatives on these exchanges. National rules cannot solve this issue, thus it should be worked towards a solution on EU level.