Repo: Legal and Documentation Issues - London - Legal - Capital/Money Markets

Course overview:

The growing importance of repo transactions has made them impossible to ignore for anyone involved in the financial markets. Indeed, despite difficult market conditions the European repo market continues to develop rapidly in variety and complexity, offering an inexpensive and efficient way to improve liquidity in the secondary markets and provide investors with better returns on their underlying collateral.

The legal issues and documentation requirements related to repo are complex and constantly evolving. Thus, as repo becomes a global product, uncertainty as to how it works in different markets increases. It is therefore vital for all parties involved in a transaction to understand the detailed workings and protect themselves from the associated legal risks.

How this course will help you:

This course provides a comprehensive and practical programme explaining the legal, regulatory and documentary issues involved in repo transactions:
A detailed examination of the global master repurchase agreement
Assessing agency transactions, the risks and regulations involved
Outlining repo in the emerging markets and how it can be used to control risk
Reviewing how tri-party repo works and its advantages
Exploring evolving tax issues both in Europe and the US
Accounting for repo transactions
An update on recent developments in the European repo markets

Who should attend:

Fixed income market makers
Stock exchange money brokers
Inter-dealer brokers
Global custodians and major pension fund managers
Risk analysts and risk managers
In-house lawyers and corporate treasurers
Regulators
Lawyers in private practice

Day 1

Richard Comotto, Visiting Fellow, The ICMA Centre

Introduction and overview of repo

The mechanics of repo
Principle uses
Terminology
Valuation, initial margin, margin maintenance, substitution and custody
Legal vs economic character
Credit characteristics
GC and specials
Comparison with secured borrowing and securities lending
Fails and negative rates
\Repurchase agreements vs sell/buy-backs

Tri-party repo

Origins of tri-party
How tri-party repo works
Tri-party services
Advantages of tri-party
Problems with tri-party
European vs Swiss vs US product
Documentation
Providers and market size

Equity repo

What makes equity repo different?
What is holding back equity repo?
GMRA Equity Annex
Synthetic structures

Agency transaction

What is an agency transaction?
Who does them?
Legal issues
Credit issues
Regulatory issues
GMRA Agency Annex & Addendum

Emerging markets

What makes emerging repo markets different?
Risk management in emerging markets
Addressing emerging market issues through repo documentation

Capital adequacy

Capital adequacy under Basel I
Capital adequacy under Basel II
European implementation under CAD 2

Day 2

Daniel Franks, Associate Solicitor, Allen & Overy

Review legal issues in repo

Main legal sensitivities
Does set-off work in insolvency?
Recharacterisation issues and consequences
Conflict of law rules
EU settlement finality directive
EU collateral directive

Global master repurchase agreement 2000

Clause by clause review

Global master repurchase agreement 2000

Overview of the architecture
Pricing
Margining
Re-pricing and adjustment

Global master repurchase agreement 2000

Events of default
Close-out
Mini close-out under paragraph 10 (e) (f)

Dan Taylor, Senior Manager, BDO Stoy Hayward LLP

Accounting for various repo transactions

IAS
UK GAAP
US GAAP
Sell/buy-backs
Income payments
Margining
Substitution
Netting

Taxation aspects of repo transactions

UK
US
Continental European

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

Mandatory fields *

Your Name	*

Your Email Address	*

Your Telephone Number	*

Your Job Title	*

Company Name	*

Country
Subject	*

Message	*


(Optional) Upload your training proposal:

Data protection

The information you provide will be safeguarded by the Euromoney Institutional Investor PLC group, whose subsidiaries may use it to keep you informed of relevant products and services. We occasionally allow reputable companies outside Euromoney Institutional Investor PLC group to contact you with details of products which may be of interest to you. As an international group, we may transfer your data on a global basis for the purposes indicated above.

If you object to being contacted regarding other Euromoney products by telephone please tick.
If you object to being contacted regarding other Euromoney products by Fax please tick.
If you do not object to being contacted by third parties please tick.

To update your email preferences at any time please visit www.euromoneyplc.com/email

I have read and agree to the Terms and Conditions.
I have read and agree to the Privacy Policy.

Advanced Bond & Debt - London

22-23 Mar 2012 (London, United Kingdom)
13-14 Sep 2012 (London, United Kingdom)

The Euromoney Legal Training course will consist of a series of lectures and workshops that will provide a practical insight into dealing with the documentation of bond & debt transactions. Participants will leave the course with all the essential tools they need to do their jobs with maximum effect having been guided through the details of such a transaction.

Bond & Debt - London

19-21 Mar 2012 (London, United Kingdom)
10-12 Sep 2012 (London, United Kingdom)

The aim of this Euromoney Legal Training course is to examine the most important legal issues which arise in the documentation of international offerings of Eurobonds. The course looks at contentious clauses in the documentation of debt issues, with particular reference to problems which may arise in areas such as material adverse change and default.

High Yield Bonds - London - NEW

1-2 Mar 2012 (London, United Kingdom)

Transaction Structures and Key Legal Issues

Bond & Debt - Stockholm

9-11 May 2012 (Stockholm, Sweden)

The aim of this Euromoney Legal Training course is to examine the most important legal issues which arise in the documentation of international offerings of Eurobonds. The course looks at contentious clauses in the documentation of debt issues, with particular reference to problems which may arise in areas such as material adverse change and default.