On 31 January 2020 the United Kingdom ("UK") left the European Union ("EU") and entered into a transition period (currently planned to end on 31 December 2020) during which EU law will continue to apply to and in the UK, even though the UK is no longer an EU member state.
Although the UK and the EU have set out their positions on their future relationship, the negotiations have been protracted and are ongoing. As the end of the transition period approaches fast, great uncertainty remains regarding the precise shape of the future relationship between the UK and the EU.
Since the Brexit referendum took place in June 2016, France has implemented an ambitious strategy to develop Paris as a prime European financial centre and to incentivise international banking and financial institutions (in particular parties to derivatives agreements) to select Paris as their place of business and destination of choice for international dispute resolution.
So far, steps taken in pursuit of this objective have not had the desired results; in particular use of the French law ISDA has been slow to get off the ground. But now that Brexit has happened and given that the terms of the future relationship between the UK and the EU remain uncertain, the advantages of the French law ISDA may finally become more apparent to market participants and result in increased use.
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