Brexit: U.S. Agencies Facilitate Legacy Swap Transfers—Under Interim Final Rule, Legacy Swaps Currently Exempt from the Swap Margin Rule Would Maintain Legacy Status If Transferred from U.K. Financial Entities as a Result of a “No-deal” Brexit

Sullivan & Cromwell LLP - March 21, 2019

Faced with the possibility of a no-deal Brexit, five U.S. agencies issued an interim final rule to allow non-cleared swaps and non-cleared security-based swaps that are “grandfathered” under the agencies’ swap margin rule to be transferred from a United Kingdom financial entity without losing grandfathered status. The interim final rule was issued without prior notice and opportunity for public comment in view of the imminent official date for the U.K. withdrawal. The interim final rule was effective immediately, on March 13, 2019.