An Introduction to Repos and the GMRA 2011

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One day course

Course Description

Repos are an important element in the global financial markets combining liquidity and collateral. Annually the total value of repo contracts outstanding on the books of major dealers typically exceeds EUR 5 trillion.

This one day course provides a clause by clause review of the new Global Master Repurchase Agreement (2011) (the “GMRA 2011”) and its Annex I.  There are also discussions on the credit and legal issues relating to this documentation.  The main differences between the 2000 and 2011 versions of the document as also discussed.  The practical negotiation exercise at the end of the day allows delegates to apply the knowledge gained during the course.

Learning Objective

Participants will take away with them the following: 

  • An understanding of GMRA 2011 and its Annexes.
  • Knowledge of the common amendments to Annex I.
  • Awareness of the common credit issues related to this documentation.
  • An understanding of the repo market and the types of products which are traded.
  • Knowledge of legal issues relating to repos and the GMRA 2000.

Who Should Attend 

  • Legal Counsel
  • Treasury Documentation professionals
  • Credit Risk Managers
  • Collateral Management specialists
  • Repo & Money Market departments
  • Middle Office & Back Office Managers

Course outline

1. The nature of and types of repo

  • What is a repo?
  • How do they work?
  • Types of repo

2. Typical Repo Uses

  • From the Seller's viewpoint
  • From the Buyer's viewpoint
  • Use by Central Banks.

3. Buy/sellbacks

  • Differences between repos and buy/sellbacks.

4. Legal issues affecting repos

  • Nature of the transaction
  • Ownership of the securities
  • Drawbacks of recharacterisation as a secured loan
  • English law legal opinion by Richard Sykes QC
  • ICMA legal opinions.

5. Repo Documentation

  • History of the Global Master Repurchase Agreement (2011) (the “GMRA 2011”)
  • Comparison between the GMRA 2000 and GMRA 2011
  • Paragraph by paragraph analysis of the GMRA 2011**
  • A review of the Institution’s own Annex I to the GMRA 2011

6. Practical negotiation exercise

Training is charged at an agreed daily rate plus Value Added Tax.

**Accounts for 70% of the course.

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