Tbma/Isma Global Master Repurchase Agreement (2011 Version)

April 12, 2023 12:22 pm Published by

The TBMA/ISMA Global Master Repurchase Agreement (2011 Version) is a widely used legal agreement in the global securities financing market. Designed by the International Securities Market Association (ISMA) and the Trade Association of the Belgian Bond Market (TBMA), the agreement governs the purchase and sale of securities between parties involved in the securities finance business. In this article, we will explore the key features of the agreement and its significance in the securities finance market.

The TBMA/ISMA Global Master Repurchase Agreement (GMRA) is designed to be a standard legal agreement between parties involved in repo transactions. The agreement is widely used across different jurisdictions and markets, providing a uniform approach to the legal framework of repo transactions. This helps to reduce legal uncertainty, increase market efficiency, and minimize the risk of disputes between parties.

The 2011 version of the GMRA is an updated version of the original 1995 agreement, incorporating changes that reflect the evolution of the securities finance market. The agreement covers a wide range of securities, including government bonds, corporate bonds, equities, and money market instruments. It also provides for different types of repo transactions, such as tri-party, delivery versus payment, and hold-in-custody.

Some of the key features of the GMRA include provisions for the delivery and transfer of securities, the calculation of margin requirements, the management of collateral, and the settlement of disputes between parties. The agreement also includes various provisions for the termination of repo transactions and the close-out of positions in case of default or insolvency.

One of the important aspects of the GMRA is its flexibility. Parties can modify the agreement to suit their specific needs, provided that such modifications are consistent with the underlying principles of the agreement. This allows parties to tailor the agreement to their particular circumstances, without compromising the overall integrity of the agreement.

In conclusion, the TBMA/ISMA Global Master Repurchase Agreement (2011 Version) is an important legal agreement in the securities finance market. Its widespread use across different jurisdictions and markets provides a uniform approach to the legal framework of repo transactions, helping to reduce legal uncertainty, increase market efficiency, and minimize the risk of disputes between parties. Its flexibility also allows parties to tailor the agreement to their specific needs, while maintaining the overall integrity of the agreement.

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