A number of industry associations, including the International Swaps and Derivatives Association ("ISDA") and the Association for Financial Markets in Europe ("AFME"), addressed a letter to the European Commission ("EC") on 28 February 2019 highlighting concerns about the impact of Brexit with respect to derivatives markets, specifically in regard to trading venues. If UK trading venues do not receive the benefit of an equivalence decision in time for exit day, UK exchange-traded derivatives risk being reclassified as over-the-counter ("OTC") derivatives. Such a reclassification could cause certain types of counterparties to exceed the clearing threshold under EMIR, thereby becoming subject to margin, clearing and other requirements. In addition, under MiFIR those counterparty types that exceed the clearing threshold must conclude transactions in OTC derivatives on either an EU trading venue or third-country venue recognized as equivalent by the EC, and if UK trading venues are not granted equivalence, counterparties may lose access to important liquidity sources for those OTC derivatives. Noting that UK trading venues will meet the criteria for equivalence under EMIR and MiFIR, the industry groups urge the EC to adopt an equivalence decision either in time for exit day or as rapidly as possible thereafter.