ISLA to stop covering legacy agreements for netting opinions
29 March 2018 London
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The International Securities Lending Association (ISLA) board has taken the decision to discontinue coverage of the October 1994 version of its Overseas Securities Lender’s Agreement, for the association’s netting opinions from April 2019 onwards.
It has also announced it will discontinue coverage of the Overseas Securities Lender’s Agreement (December 1995 Version), and the Master Gilt Edged Stock Lending Agreement (April 1996 version), also from April 2019.
The annual netting cycle runs from April to March. ISLA said that for the avoidance of doubt, the netting opinions that it is about to publish in April this year will cover the legacy agreements.
The netting opinions that will be published in April next year will no longer cover the legacy agreements.
The netting opinions will continue to cover the GMSLA 2000 version and the GMSLA 2010 version, for the foreseeable future.
ISLA said the issue of no longer covering the legacy agreements has been discussed for a few years particularly on the netting subscriber calls.
However, ISLA said that it has held off making the change as participants have continued to use the legacy agreements.
The decision has been taken due to the fact the legacy agreements are now over 20 years old and ISLA has continued to urge members to re-paper to the GMSLA 2010.
In addition, there is a cost to obtaining opinions on the legacy agreements and funds can be better used to expand coverage of additional jurisdictions and counterpart types for existing opinions.
It has also announced it will discontinue coverage of the Overseas Securities Lender’s Agreement (December 1995 Version), and the Master Gilt Edged Stock Lending Agreement (April 1996 version), also from April 2019.
The annual netting cycle runs from April to March. ISLA said that for the avoidance of doubt, the netting opinions that it is about to publish in April this year will cover the legacy agreements.
The netting opinions that will be published in April next year will no longer cover the legacy agreements.
The netting opinions will continue to cover the GMSLA 2000 version and the GMSLA 2010 version, for the foreseeable future.
ISLA said the issue of no longer covering the legacy agreements has been discussed for a few years particularly on the netting subscriber calls.
However, ISLA said that it has held off making the change as participants have continued to use the legacy agreements.
The decision has been taken due to the fact the legacy agreements are now over 20 years old and ISLA has continued to urge members to re-paper to the GMSLA 2010.
In addition, there is a cost to obtaining opinions on the legacy agreements and funds can be better used to expand coverage of additional jurisdictions and counterpart types for existing opinions.
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