UK-based trading desks are bracing for tough post-Brexit obstacles to repo trading with the European Union’s non-financial companies – a source of funding that will grow in importance under incoming capital rules.
Based on the current state of Brexit negotiations, UK banks and UK-based operations of foreign banks are set to lose their EU passporting rights, which allow them to do business anywhere in the bloc without additional authorisation from the host country. Lawyers point to workarounds that would enable UK-based firms to continue entering into repurchase agreements with EU corporates, but none are without problems.
The full article is available at https://www.risk.net/regulation/5940846/brexit-threatens-uk-based-banks-corporate-repo-funding