The United Kingdom’s withdrawal from the EU will introduce significant regulatory, legislative and political change to the whole of the UK and will have an impact on all sectors of the economy.
The agreement governing the terms of the UK’s withdrawal from the EU introduces an implementation period, which took effect at the moment the UK formally left the EU. This will last until at least 31 December 2020 and may be extended until 31 December 2021 (by mutual agreement).
During the implementation period EU law continues to apply in the UK as though it were still an EU Member State. Therefore, access to the LME and LME Clear will remain unaffected during this period, as will members’ ability to provide services to their clients in the EEA.
The EU and the UK will also aim to conclude a trade agreement during the implementation period. Whilst this agreement may include terms governing the reciprocal cross-border provision and receipt of financial services, this cannot be assured.
LME Group will therefore build on the positive engagement it has had with the relevant European regulatory authorities to understand what steps need to be taken in order to retain the assurances that it had been granted previously in case of a no-deal Brexit. This will ensure LME Group can continue providing services to EEA participants, should the implementation period end without any agreement relating to financial services being in place.
We welcome engagement from all those with interest in our market. Please direct any enquiries via email or your usual LME contact.