Regulatory Alerts2024-01-01
Global Master Repurchase Agreement
Issued by the Securities Industry and Financial Markets Association and the International Capital Market Association, this 2011 agreement establishes a standardized framework governing bilateral repurchase and buy/sell back transactions. It defines critical operational parameters, including margin maintenance protocols, transaction exposure calculations, and default procedures, to regulate counterparty risk in securities financing activities. The document mandates prompt written confirmation of trades, specifies cash and security margin transfer mechanisms to mitigate exposure, and provides clear rules for early termination, pricing adjustments, and currency conversion.
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