ISLA bolsters pledge GMSLA with new legal opinions
01 May 2020 London
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The International Securities Lending Association (ISLA) has released four additional bankruptcy remoteness opinions to support the collateral pledge version of its Global Master Securities Lending Agreement (GMSLA).
The GMSLA Security Interest over Collateral was first released in 2018 and can be used for securities lending transactions where the collateral is provided by way of security interest.
This is necessary for certain highly-regulated fund types to participate in securities lending such as UCITS.
The new opinions, provided by Freshfields Bruckhaus Deringer, assess the nature of the borrower’s rights in the pledged collateral and the impact on those rights of the insolvency of the custodian and the lender.
The additional legal review was requested by the ISLA Legal Steering Group, chaired by Jamie Pullen of Bank of America, as confirmation of the bankruptcy remoteness of the posted collateral would benefit users of the agreement, the association explains.
The agreement and the new legal opinions are available to all ISLA members.
ISLA members can also access various supporting security agreements and legal opinions.
To view the supporting triparty control agreements, ISLA says that members need to contact their triparty business representative directly.
The triparty agents that ISLA has worked with are BNY Mellon, Clearstream, Euroclear and J.P. Morgan.
The GMSLA Security Interest over Collateral was first released in 2018 and can be used for securities lending transactions where the collateral is provided by way of security interest.
This is necessary for certain highly-regulated fund types to participate in securities lending such as UCITS.
The new opinions, provided by Freshfields Bruckhaus Deringer, assess the nature of the borrower’s rights in the pledged collateral and the impact on those rights of the insolvency of the custodian and the lender.
The additional legal review was requested by the ISLA Legal Steering Group, chaired by Jamie Pullen of Bank of America, as confirmation of the bankruptcy remoteness of the posted collateral would benefit users of the agreement, the association explains.
The agreement and the new legal opinions are available to all ISLA members.
ISLA members can also access various supporting security agreements and legal opinions.
To view the supporting triparty control agreements, ISLA says that members need to contact their triparty business representative directly.
The triparty agents that ISLA has worked with are BNY Mellon, Clearstream, Euroclear and J.P. Morgan.
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