ISLA pre-launches new GMSLA
29 November 2018 London
Image: Shutterstock
The International Securities Lending Association (ISLA) has pre-launched the new Global Master Securities Lending Agreement (GMSLA) security interest over collateral 2018 version.
ISLA in partnership with Clifford Chance and industry stakeholders has developed a pledge collateral version of its existing GMSLA.
Based on the existing GMSLA 2010, the new agreement provides ISLA members with an alternative to the title transfer framework.
ISLA has developed a security agreement that creates a security interest over the relevant collateral accounts. In order to do this, the association worked with tri-party service providers to develop tri-party collateral agreements that serve as a control document between the borrower, lender and tri-party agent.
The additional documents are available for business undertaken using Bank of New York Mellon, Deutsche Borse, Euroclear and J.P. Morgan in their capacity as tri-party agent, and have been reviewed by Clifford Chance to work alongside the GMSLA security interest over collateral 2018 version.
In addition, ISLA will be making available a legal opinion from Clifford Chance and will inform members accordingly.
The GMSLA provides an important alternative to the existing title transfer legal frameworks and allows market participants to potentially optimise the consumption of binding capital constraints such as risk-weighted assets as well as manage more effectively collateral reporting obligations.
The agreements are available on the ISLA website for member firms.
ISLA in partnership with Clifford Chance and industry stakeholders has developed a pledge collateral version of its existing GMSLA.
Based on the existing GMSLA 2010, the new agreement provides ISLA members with an alternative to the title transfer framework.
ISLA has developed a security agreement that creates a security interest over the relevant collateral accounts. In order to do this, the association worked with tri-party service providers to develop tri-party collateral agreements that serve as a control document between the borrower, lender and tri-party agent.
The additional documents are available for business undertaken using Bank of New York Mellon, Deutsche Borse, Euroclear and J.P. Morgan in their capacity as tri-party agent, and have been reviewed by Clifford Chance to work alongside the GMSLA security interest over collateral 2018 version.
In addition, ISLA will be making available a legal opinion from Clifford Chance and will inform members accordingly.
The GMSLA provides an important alternative to the existing title transfer legal frameworks and allows market participants to potentially optimise the consumption of binding capital constraints such as risk-weighted assets as well as manage more effectively collateral reporting obligations.
The agreements are available on the ISLA website for member firms.
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