Germany Will Negotiate Post-Brexit Equivalence When the Time Comes

The transcript discusses the cautious approach needed in clearing and equivalence of EU-denominated swaps. It highlights that the assessment of equivalence is premature, as the European Commission has granted an 18-month equivalence period. The process involves comparing legal and structural conditions in different markets. The speaker advises investors to wait and see, as it's too early to question the current rules.

What is the main concern discussed at the beginning of the video regarding euro-denominated swaps?

• The high transaction costs

• The lack of market participants

• The need for immediate clearing

• The cautious approach due to ongoing negotiations

Why is it too early to assess equivalence according to the speaker?

• Equivalence requires a comparative analysis that hasn't started

• There is no interest from investors

• The legal framework is incomplete

• The markets are not ready

What does the process of determining equivalence involve?

• A simple market survey

• A comparative analysis of legal and structural conditions

• A decision by a single authority

• A vote by market participants

What is the former Commission President's view on achieving equivalence?

• It is highly likely

• It is not necessary

• There is very little chance

• It is already achieved

What advice does the speaker give to investors regarding the current situation?

• To withdraw their investments

• To wait and see

• To seek alternative markets

• To invest immediately