On Tuesday, ISDA and 6 other European trade bodies issued a paper outlining the calamitous effect a hard Brexit would have on the European derivatives markets. In this unlikely outcome, the UK becomes a “third country” on 29th March, 2019 with no transitional period. The issues are well known, including the fact that almost all EUR clearing is done via London’s CCPs, which would become ineligible to clear EU27 bank’s trades in the event of a hard Brexit. The paper contains a useful table itemising the cliff edge effects under EMIR, MIFID and the CRR and calls for the EC to announce mitigating steps (such as by confirming that relevant UK regimes are “equivalent” and by accelerating necessary permissions (such as for the UK’s CCPs) now rather than waiting until (or beyond) 29th March. The UK’s temporary permissions regime was announced months ago but has not yet been reciprocated. As the paper says, “In the absence of transparency, market participants may be forced to take disruptive, risky, costly and potentially irreversible (and ultimately unnecessary) steps to mitigate adverse impacts (where mitigation of such impacts is possible)…”. AFME, the Bank of England and ESMA have made similar calls in the last few days.