The LMA’s 30th November paper “Turning off the liquidity tap” points out that a hard no-deal Brexit will benefit nobody in the European loan capital markets. It’s an argument that has not trumped politics so far… It conveniently summarizes where “equivalence” might be relevant to the loan and related markets (swaps and other ancillaries) – and of course the political declaration (if that gets agreed) refers to both sides working on issuing equivalence notifications by the end of June 2020 – including (i) Lending – new business: CRD IV has no “equivalence” concept to replace the passport, so lenders need to check EU27 local law to see if local licensing is required for lending into the EU27 country, (ii) Lending – existing loans: holding them to maturity is one thing, but what about undrawn commitments, revolvers, amendments and enforcement? (iii) CLOs: can UK sponsors continue to hold the risk retention? and (iv) Enforceability of English judgments in the EU27: it notes that Brussels I will lapse but that the Hague Convention can replace it so long as the submission is an exclusive one. The LMA notes that equivalence decisions could help as regards (i) permitting UK bank exposure still qualify for favorable regulatory capital treatment under CRR, (ii) whether English law agreements need the BRRD bail-in wording or not, (iii) the use of UK credit rating agency ratings (under the CRA Regulation), (iv) the use of UK benchmarks by EU27 entities (under the BMR), and (v) GDPR – data transfer out of the EU27 is essential for syndicated lending with a UK agent.