StoneX Group Inc (NASDAQ:SNEX), a diversified global brokerage and financial services firm, has posted its 10-K filing with the Securities and Exchange Commission (SEC), detailing the plan the company has regarding the end of the Brexit transition period.

The U.K. left the E.U. in January 2020 pursuant to a Withdrawal Agreement. It has entered into a transition period which is due to operate until December 31, 2020. At the end of the transition period, British investment and payment firms will lose the right to conduct business within European Economic Area (EEA) states based on their ‘home’ state authorization.

Without appropriate authorization, British firms will largely be restricted to providing business to clients that are domiciled in the EEA on a ‘reverse solicitation’ basis. Furthermore, British investment firms will lose certain rights with respect to access to, or providing their clients with a connection to, certain infrastructural assets that are necessary for the provision of certain services.

Examples include the provision of direct electronic access to trading venues authorized in the E.U. and the maintenance of a Target 2 bank account to make or receive margin payments to central counterparties authorized in the E.U.

StoneX Financial Ltd says it has put in place a comprehensive Brexit contingency plan to mitigate the risks associated with Brexit. This includes the transfer of assets, services and clients to StoneX Financial Ltd’s subsidiary (StoneX Financial Germany GmbH) and sister company (StoneX Financial Europe S.A).

However, StoneX Financial Ltd anticipates challenges associated with the timing of StoneX Financial Europe S.A. obtaining access to a Target 2 account to continue clearing the StoneX group’s Euronext business through LCH S.A. This may necessitate that StoneX Financial Ltd and StoneX Financial Inc. route this business through another clearing member of LCH S.A. on an indirect clearing basis.

Similarly, GAIN Capital UK Limited has adopted a contingency plan to mitigate the risks associated with Brexit. This includes GAIN Capital UK Limited’s affiliate company, GAIN Capital Europe Limited, applying for a financial services license in Cyprus to enable the GAIN Capital group to expand its business in the EEA and continue benefiting from MiFID passporting rights after the end of the Brexit transition period on 31 December 2020.

StoneX says that the UK’s withdrawal from the European Union could have an adverse effect on its business and financial results. Brexit could cause disruptions to, and create uncertainty surrounding, its business in the UK and EU, including its right to serve customers in the EU on a passport basis due to the licenses the company holds in the UK.

Brexit could also impact its existing and future relationships with suppliers and employees in the UK and EU by disrupting the free movement of goods, services, and people between the UK, the EU, and elsewhere. As a result, Brexit could have an adverse effect on StoneX’s future business, financial results and operations.

Further, uncertainty around these and related issues could lead to adverse effects on the economy of the U.K. and the other economies in which StoneX operates. There can be no assurance that any or all of these events will not have a material adverse effect on its business operations, results of operations and financial condition.