BBA

BBA Brexit Quick Brief on UK WTO Profile and FTAS

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On May 10, 2017, the British Bankers’ Association (BBA) published a Brexit quick brief: “External trade policy and a UK exit from the EU – the UK’s WTO profile and beyond”.

The UK’s decision to leave the EU means that the UK will cease to make trade policy collectively with the EU and will need to reestablish a trade policy within the context of the World Trade Organization (“WTO“). The quick brief considers issues relating to the UK’s profile at the WTO and free trade agreements (“FTAs“) arising from Brexit and, as applicable, the potential impact on financial services.

It considers issues such as the confirmation of content in the UK’s schedule of commitments under the General Agreement on Trade in Services (GATS). It also notes that the UK will need to consider the implications of losing the preferential access granted to UK-based exporters through the FTAs agreed on its behalf by the EU; it is uncertain whether these agreements can simply be translated to the UK. Further, the UK currently has framework arrangements in place with non-EEA countries that are embedded in EU legislation, including arrangements relating to financial market infrastructures and data protection. The quick brief comments on the fact that the UK will need to reestablish those arrangements in order to reflect its status outside the EU. It also notes that the UK will be able to enter into new FTAs with non-EU markets.

BBA Announces Changes to LIBOR

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On June 12, the British Bankers’ Association (BBA) published a press release announcing changes to the London Interbank Offered Rate (LIBOR).  The reforms follow the publication of the Wheatley Review in September 2012, and include:

  • From July 1, the publication of BBA LIBOR individual panel banks’ daily submissions for USD, EUR, GBP, CHF and JPY will be embargoed for three months.  The daily calculation and publication of BBA LIBOR fixing rates will continue unaffected.  The rates for a whole month at a time will be published at the beginning of the fourth month; the first delayed release of individual bank submissions will be provided on the first business day of November 2013.
  • The publication of “same day” EURO LIBOR rates for one week and one month will cease from July 31.  These two rates were supplemental to the “spot” EUR LIBOR rates for all seven LIBOR tenors, which will continue as usual.  Press Release.