CFTC paves way for no-deal Brexit swaps transfers

Affiliate transfers would not trigger US margin rules if UK crashes out of EU without a deal

Interim final rule aims to provide regulatory certainty in the event of no-deal Brexit

Uncleared legacy swaps transferred out of the UK to affiliates elsewhere would be safe from costly US margin requirements in the event of a no-deal Brexit, after the Commodity Futures Trading Commission (CFTC) adopted an interim rule that echoes relief granted by Europe’s supervisory authorities in November.

The catch, however, is that both sets of rules become effective only in the event that the UK crashes out of the European Union without a withdrawal agreement in place, effectively