On March 25, the CFTC adopted and requested comments on an interim final rule designed to provide greater regulatory certainty to global derivatives markets in the event of a "no-deal Brexit." If the United Kingdom leaves the European Union without a negotiated withdrawal agreement, affected swap dealers and major swap participants may need to effect legal transfers of uncleared swaps that were entered into before the relevant compliance dates under the CFTC Margin Rule or Prudential Margin Rule. The interim final rule would allow an uncleared swap to retain its legacy status under the CFTC Margin Rule or Prudential Margin Rule when so transferred. Release. Interim Final Rule.
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