Master Agreements Workshop
When? Join our 3-day workshop (or part thereof)
For whom? Employees who are new to the topic can come along for a high level overview of the master agreements, as a ‘taster’ of what to expect and what to look out for. Also, those who are familiar with these arrangements can come back for a refresher – a ‘back to basics’ overview of the agreements.
Day 1: Master Agreements Overview
a) The ISDA Master Agreement
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What is an ISDA®, what products does it cover, the key benefits that an ISDA® provides for
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The role of derivatives in hedging risk
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The structure of the ISDA® and the netting benefits (settlement netting, close-out netting and set-off)
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Long Form Confirmations
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Cross default
b) The Global Master Repurchase Agreement
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What is a repo: classic; buy-/sell-back and securities lending transaction
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Why use repo?
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Background to the legal documentation
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Benefits of using a GMRA
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Legal aspects of a repo
c) The Global Master Securities Lending Agreement
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What is securities lending?
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Why enter into securities lending transactions?
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Risks involved in securities lending
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History and structure of the GMSLA
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Main differences between repo and securities lending
8 hours @R9 000 pp (excl. VAT)
Day 2: Collateral Overview
a) The Credit Support Annex
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What is collateral and why is it so important?
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The operational and credit aspects of the collateral agreements: how to calculate exposure; what collateral is required; thresholds; minimum transfer amounts; independent amounts; delivery amounts and return amounts
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Over-collateralisation risk
b) The Variation Margin CSA
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The regulatory requirements for Variation Margin for uncleared derivatives under EMIR, Dodd Frank and the Financial Markets Act
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Which entities and products are in-scope for the margin rules
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How to document the new VM rules: amend, amend and re-state, and new 2016 VM CSA
c) Margin Maintenance under the GMRA and GMSLA
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Different methods of reducing exposure under the GMRA (re-pricing, adjustment, margin call)
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Collateral calls under the GMSLA (valuation percentage)
8 hours @R9 000 pp (excl. VAT)
Day 3: Regulatory Overview
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Counterparty classifications under Dodd Frank, EMIR & the Financial Markets Act
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Reporting requirements under Dodd Frank, EMIR & the Financial Markets Act
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Central clearing requirements under Dodd Frank, EMIR & the Financial Markets Act
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Main Protocols published by ISDA®for regulatory compliance (EMIR Portfolio and Dispute Resolution, Cross Border Swaps Representation Letter, Bank Resolution and Recovery Directive).
4 hours @R6 000 pp (excl. VAT)
