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MASTERING THE MASTER AGREEMENTS

Key provisions and mechanisms in the ISDA, CSA, GMRA and GMSLA Master Agreements

Discounts apply
Online

Course Details

This course can be booked as one or both days. Audience: The course will benefit legal, credit and business teams involved in negotiating, setting credit terms and trading these products. Agenda: Day One: The ISDA® & VM CSA What is an ISDA®, what products it covers, the key benefits that an ISDA® provides for Different types of derivatives: OTC, exchange-traded & centrally-cleared (through a central counterparty) The role of derivatives in hedging risk The documentation structure of an ISDA® The structure of an ISDA® & the netting benefits (settlement netting, close-out netting & set-off) The main events of default & how they trigger The main termination events in an ISDA® The key provisions of an ISDA® including close-out amount, termination currency, set-off, multibranch clauses, regulatory clauses What role collateral plays in derivatives & how a CSA interacts with an ISDA® What is collateral & why is it so important? The regulatory requirements for variation margin for uncleared derivatives under the Financial Markets Act The key provisions of the VM CSA: how to calculate exposure; what collateral is required; thresholds; minimum transfer amounts; independent amounts; delivery amounts, return amounts & valuation percentages Which entities & products are in-scope for VM margin The meaning of covered transactions & which transactions the new VM CSA should cover The various options of how to pay interest The impact of having multiple CSAs, setting-off against other CSAs, netting collateral calls across multiple CSAs Eligible collateral & valuation percentages Minimum transfer amounts & how they are apportioned across multiple CSAs Day Two: The Global Master Repurchase Agreement (GMRA) and the Global Master Securities Lending Agreement (GMSLA) What is a repo: the difference between a classic repo; buy-/sell-back & securities lending transaction Cash flows of a repo trade Why use repo? Legal aspects of a repo Risks & rewards: credit risks involved Margin & margin maintenance Collateral & haircuts: initial margin & haircut approach (& how they relate to transaction exposure) Re-pricing Adjustment Income payments Buy-in, mini close-out & set-off What is securities lending? Risks involved in securities lending Collateral & margin Market value Substitutions Manufactured payments Voting rights & corporate actions Default mechanisms Using the GMSLA in South Africa The terms of the 2016 SASLA Annex Tax implications & STT exemptions Re-characterisation risks


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