Joseph Wren

This Practice Note gives an introduction to repo (repurchase transactions) and the Global Master Repurchase Agreement (GMRA), the most commonly used agreement in the UK and EU repo markets. It looks at (1) why parties use repo, (2) payment and delivery obligations, (3) key legal issues which arise with repos, (4) the difference between repo and securities lending, (5) the general structure of the market documentation, (6) benefits of using the GMRA, (7) key provisions under the GMRA, (8) clearing and automatic trading, (9) repo and the Financial Collateral Arrangements (No.2) Regulations 2003, and (10) in brief, the Securities Financing Transactions Regulation.

This Practice Note gives an introduction to securities lending transactions and the Global Master Securities Lending Agreement (GMSLA), one of the most commonly used agreements in the UK and EU securities lending markets. It covers (1) why parties enter into securities lending transactions, (2) payment and delivery obligations, (3) key legal issues which arise in a securities lending transaction, (4) the difference between securities lending and repo, (5) the general structure of the market documentation, (6) benefits of using the GMSLA, (7) key obligations under the GMSLA, (8) central clearing, (9) the pledge structure (security interest) GMSLA, (10) securities lending and the Financial Collateral Arrangements (No.2) Regulations 2003 (FCAR), and (11) the Securities Financing Transactions Regulation (SFTR).