ICMA to launch GMRA clause library and taxonomy project
13 October 2021 UK
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The International Capital Market Association (ICMA) has announced it will carry out a four-month initiative to develop ICMA’s Global Master Repurchase Agreement (GMRA) clause taxonomy and library.
The project with global lawtech and legal data consulting firm, D2 Legal Technology, aims to standardise and improve efficiencies in the process of negotiating and managing repo transaction documentation.
GMRA will aim to build an industry-wide, foundational clause taxonomy that will support the association’s goal in promoting resilient, well-functioning, international and globally coherent cross-border debt securities markets.
The clause library will help to mitigate legal risk in a number of ways: it will introduce industry-validated clauses that will reduce scope for error and problematic or inconsistent drafting; improve the efficiency of negotiations by allowing lawyers and negotiators to focus on the most substantive and consequential clauses and issues; and allow for greater visibility in meeting business, regulatory and operational requirements.
Increased standardisation and digitisation will drive more accurate data capture and efficient repo trade processing, both within firms and across the market according to ICMA.
The news follows the International Securities Lending Association’s (ISLA) own launch of its clause library and taxonomy, which was announced last month. The project aims to build on Global Master Securities Lending Agreements (GMSLA) preprint forms to improve efficiency and reduce time in drafting, negotiating and executing master trading agreements.
The project with global lawtech and legal data consulting firm, D2 Legal Technology, aims to standardise and improve efficiencies in the process of negotiating and managing repo transaction documentation.
GMRA will aim to build an industry-wide, foundational clause taxonomy that will support the association’s goal in promoting resilient, well-functioning, international and globally coherent cross-border debt securities markets.
The clause library will help to mitigate legal risk in a number of ways: it will introduce industry-validated clauses that will reduce scope for error and problematic or inconsistent drafting; improve the efficiency of negotiations by allowing lawyers and negotiators to focus on the most substantive and consequential clauses and issues; and allow for greater visibility in meeting business, regulatory and operational requirements.
Increased standardisation and digitisation will drive more accurate data capture and efficient repo trade processing, both within firms and across the market according to ICMA.
The news follows the International Securities Lending Association’s (ISLA) own launch of its clause library and taxonomy, which was announced last month. The project aims to build on Global Master Securities Lending Agreements (GMSLA) preprint forms to improve efficiency and reduce time in drafting, negotiating and executing master trading agreements.
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