London Metal Exchange members will be permitted to clear via London even if no Brexit deal is reached, although it remains unclear whether this reprieve would also apply in the event of Brexit being agreed with a deal on March 29, 2019.
European Commission vice-president Valdis Dombrovskis said in media reports on Tuesday October 30 that the move was designed to ensure a catastrophic impact on clearing in the derivatives industry was averted in the event of a no-Brexit scenario. Dombrovskis did not say whether the UK’s clearing houses would be able to clear European Economic Area-incorporated members before they become recognized central counterparty clearing houses (CCPs), which is a restriction currently in place under Brexit.
