The International Capital Market Association (ICMA) announced the publication of a legal opinion covering the Global Master Repurchase Agreement (GMRA) for the Kingdom of Saudi Arabia (KSA), which recognizes the enforceability of close-out netting under regulations published by the Saudi Central Bank (SAMA) and Capital Markets Authority (CMA) earlier this year.
This is an important milestone towards strengthening the stability and sustainability of the financial sector in the KSA, bringing its financial infrastructure in line with international standards.
The ICMA GMRA 2025 opinions now include the netting coverage of 74 jurisdictions. All opinions cover at a minimum companies, banks and securities dealers. Most jurisdictions also cover insurance companies, hedge funds, mutual funds and pension funds (where generic coverage is possible) as parties to the GMRA.
In addition, the International Securities Lending Association (ISLA) published a netting opinion that covers the Global Master Securities Lending Agreement (GMSLA 2000 & 2010) and will provide market participants and their compliance teams the assurance that securities lending transactions documented under the GMSLA will be enforceable.
Andrew Dyson, CEO ISLA, said in a statement: “The provision of close-out netting paves the way for the securities financing market to support the development of a deep, liquid and efficient capital market, which is vital to Saudi Arabia’s 2030 Economic Vision growth and diversification ambitions”.