ICMA updates European repo guidelines
21 December 2017 Paris
Image: Shutterstock
The International Capital Market Association (ICMA) has updated its guide for best practice in the European repo market.
The guide, which was approved by the ICMA’s International Repo and Collateral Council and Committee (IRCC), outlines standards for the orderly trading and settlement of repo transactions.
ICMA’s guide covers the full scope of the repo trading life cycle including both repo and sell/buy-backs but securities lending transactions are out of the scope.
The guide focuses on trading and post-trade conventions in the crossborder repo market in Europe, meaning it differs in emphasis from codes published or sponsored by regulators, which have a prudential purpose and are focused on domestic repo markets.
According to ICMA, the guide is based on market experience and industry suggestions that could help avoid uncertainties or disagreements about transactions and disruption to repo trading and settlement.
ICMA clarified that the practices are set out only as general recommendations.
The guide, which was approved by the ICMA’s International Repo and Collateral Council and Committee (IRCC), outlines standards for the orderly trading and settlement of repo transactions.
ICMA’s guide covers the full scope of the repo trading life cycle including both repo and sell/buy-backs but securities lending transactions are out of the scope.
The guide focuses on trading and post-trade conventions in the crossborder repo market in Europe, meaning it differs in emphasis from codes published or sponsored by regulators, which have a prudential purpose and are focused on domestic repo markets.
According to ICMA, the guide is based on market experience and industry suggestions that could help avoid uncertainties or disagreements about transactions and disruption to repo trading and settlement.
ICMA clarified that the practices are set out only as general recommendations.
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