2011 GLOBAL MASTER REPURCHASE AGREEMENT

Course Details

Audience: This course benefits the legal teams involved in negotiating this agreement, the credit teams involved in assessing credit risk on these transactions as well as the trading teams who trade repo. Collateral personnel may also be interested in this course in terms of how the margining process works. Agenda: What is a repo: classic repo; buy-/sell-back and securities lending transaction Tri-party repo An overview of the different repo products Why use repo? Background to the legal documentation Benefits of using a GMRA Legal aspects of a repo Risks and rewards: credit risks involved New or different definitions used in the 2011 GMRA Margin and margin maintenance Collateral and haircuts: margin ratio and margin percentage calculations (and how they relate to Transaction Exposure) Re-pricing Adjustment Income payments Substitution of collateral Default mechanisms in the GMRA Buy-in, mini close-out and set-off The Annex and elective provisions; the Buy/Sell Back Annex The use of the GMRA in South Africa Re-characterisation risks Tax implications ​ Outcomes: Delegates will gain a solid understanding of the 2011 GMRA, the margining process as well as how this agreement works in the context of SA law. Negotiation points of the agreement will also be discussed to give the delegates a good understanding of how to effectively negotiate the agreement.