The International Capital Market Association’s (ICMA’s) European Repo and Collateral Council (ERCC) has published an updated version of the ERCC Guide to Best Practice in the European Repo Market.
The ERCC Guide is a flagship document for ICMA and provides detailed guidance, best practice recommendations, and clarifications that are intended to support the well-organized trading and settlement of repos. Comprising 170 pages, the ERCC Guide is among the most substantial and well-established industry self-regulatory guidance across the entire financial market.
This latest document reflects in-depth discussions and consultations with ERCC members which led to updates in several key areas of best practice including:
- Resilience and recovery of trading and post-trading infrastructure
- The impact of CSD and SSS outages
- Template agreement for bilateral pair-offs
- Sanctions
- Cancellation of trades made in error on automatic trading systems
- Making prices on automatic trading systems
- Off-market prices on automated (RFQ) trading systems
- Repo portfolio transfers between LDI pension fund managers
- Buy-outs of LDI repo portfolios