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UNDERSTANDING THE GMRA WITH RICHARD COMOTTO

07 December 2022 10:00 - 13:00@ London, United Kingdom

Understanding the GMRA with Richard Comotto

Date: December 7th, 8th, 13th, 14th, 15th
Time: 10:00-13:00
Format: Livestream

This course analyses how repo transactions operate within the framework provided by the Global Master Repurchase Agreement (GMRA) and highlights the issues that need to be addressed by users. The GMRA has underpinned the development of the cross border repo markets since its first publication in 1992 with subsequent revised versions in 1995, 2000 and 2011.

The course provides a clear practical context to documentation and underlying issues, starting with a rigorous introduction to the fundamental legal and operational characteristics of repo, transactional uses and markets. The main body of the course involves a detailed review of this master agreement and how it structures risk and operational management. The course also examines the role of and special issues posed by key market infrastructures such as electronic trading venues, triparty collateral management and central clearing through CCPs, and new regulation.

Course Outcomes
By completing this course you will be able to:

  • Explain why master agreements are necessary in general and the advantages of using GMRA in particular. 
  • Understand how the GMRA is organized and be able to navigate their way around the document to find provisions relevant to particular issues.
  • Become aware of the ICMA’s Guide to Best Practice in the European Repo Market and its role in relation to the GMRA and market procedures.
  • Understand the dual nature of repo as a sale-and-repurchase legal structure performing the economic functions of a secured loan and apply this insight by answering questions about repo from first principles.
  • Compare and contrast repurchase transactions and buy/sell-backs.
  • Appreciate the flexibility of the GMRA to allow the varied structuring of repos.
  • Explain the role of haircuts and initial margins, compare and contrast them, and apply them to exposure calculations.
  • Demonstrate, by reference to the GMRA, the calculation of transaction and net exposures, including net margin, and the concepts of Repricing and Adjustment.
  • Outline, by reference to the GMRA, the post-trade operational procedures and contingency provisions in the GMRA for substitution of collateral, corporate events and failed settlement.
  • Explain, by reference, the default procedures under the GMRA.
  • Recognize the key legal issues affecting repos, including legal cases, issues that might arise from the use of the GMRA in foreign jurisdictions and the potential impact of Brexit; and they should know how to use legal opinions.
  • Understand the role of tri-party collateral management, what tri-party agents do and do not do, and how use of a tri-party agent affects use of the GMRA.
  • Understand what is meant by central clearing, the role of a CCP and how use of a CCP affects use of the GMRA.
  • Identify and outline the key capital, leverage, liquidity regulations applying to repos in Europe as well as settlement and reporting requirements.
  • Explain the potential impact of sustainability requirements on the use of collateral in repo.

Certification and Programme Recognition
This course has been approved by the Securities & Futures Commission of Hong Kong for Continuous Professional Training (CPT).
ICMA is also a member of the CPD® Certification Service which helps organisations formalise knowledge into a structured and recognised approach to meet professional development expectations.

ICMA recommends that 20 learning hours can be associated with this course, based on attended/undertaken hours of study required to successfully complete the learning outcomes.

The course is certified by ICMA. A Certificate of Completion will be awarded to those who meet minimum attendance requirements. Please note that while course recordings will be made available to delegates, it is a course requirement that delegates meet the minimum attendance requirements to be eligible for a certificate. Please contact education@icmagroup.org if you have any questions regarding certification.

Please note that your course certificate of attendance or completion should be sufficient to satisfy any professional development requirements – if you require further evidence, please contact us at education@icmagroup.org.

Register here. 

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