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The GMRA is the standard agreement used for international repo transactions and is administered jointly with the International Capital Market Association (ICMA).
For the first time, the 2008 process combines the opinions for repo with the opinions in support of the global master agreements for securities lending. This is the result of cooperation among four trade associations: SIFMA, ICMA, International Securities Lending Association and the London Investment Banking Association.
Legal opinions are obtained annually to confirm the enforceability of the GMRA and its netting provisions in those jurisdictions where member firms transact repurchase agreements.
This year SIFMA and ICMA have gathered opinions for 29 jurisdictions. The 2008 opinions have been extended to cover ‘central banks’ as counterparties in these jurisdictions and include, for the first time, opinions for five jurisdictions: Anguilla, Barbados, Iceland, India and Indonesia.
“The addition of these new jurisdictions shows the global reach of the repo business, and encourages the adoption of the GMRA as the global template for repo,” said Mark Austen, managing director of SIFMA affiliate, the European Primary Dealers Association.
“These opinions help firms maximise their capital and minimise risk. In the current market environment this is more important than ever. As a trade association we are keen to explore ways to achieve greater cover for our member firms and to help them further develop their repurchase business,” added Robert Toomey, a managing director with SIFMA’s funding division.
The updated repurchase opinions cover both the 1995 and 2000 versions of the GMRA in addition to the 1995 GMRA Amendment Agreement. The GMRA’s legal opinions are available at: www.sifma.org/services/publications/pub_gmra.shtml free of charge for SIFMA members and for a fee for non-members.
