The International Capital Market Association (ICMA) announced the publication of the 2023 Global Master Repurchase Agreement (GMRA) legal opinion updates. The opinions provide ICMA members with exclusive access to a substantive body of legal know-how in relation to the enforceability of the GMRA and, in particular, the GMRA netting provisions in over 60 jurisdictions.
Regulators require repo transactions to be documented under robust written legal agreements like the GMRA, supported by regularly updated legal opinions, as a condition of recognizing the reduction of credit risk by collateral and close-out netting in the calculation of regulatory capital requirements and large exposures. The GMRA legal opinions assist members in satisfying such regulatory conditions in order to realise related capital benefits.
Providing ICMA members with access to a comprehensive list of annually updated legal opinions, spanning over 60 jurisdictions, offers members a business-critical service in relation to their GMRA related activities.