International Securities Lending Association

ISLA and the International Capital Market Association (ICMA) have partnered to run an in-person workshop across three days in October 2024 – 9, 10 & 11 .

This course provides a solid and broad understanding of all key aspects of repo and securities lending and of the trading and post-trade management of these instruments within the frameworks provided by the GMRA and GMSLA. It is presented by a unique combination of experts with first-hand experience of all dimensions of repo and securities lending.

Although designed primarily for legal and documentation staff, the breadth of the course rigor provided by the documentary framework has made it very popular with staff with varied professional backgrounds and experience from a wide range of different types of institutions.

The GMRA-GMSLA workshop has been running since 2009.

Learning Outcomes

By completing this course you will be able to:

Delegates should:

• Understand why master agreements are necessary in general and the particular advantages of the GMRA and GMSLA.
• Demonstrate a working knowledge of how the GMRA and GMSLA are organized by being able to navigate their way around the documents to find the provisions relevant to particular issues.
• Be aware of the ICMA’s Guide to Best Practice in the European Repo Market and its role in relation to the GMRA, and the parallel role of ISLA’s market guidance.
• Appreciate the importance of the title transfer of collateral for repo but understand why there is a choice of collateralization for securities lending.
• From an understanding of the dual nature of repo as a sale-and-repurchase legal structure performing the economic functions of a secured loan, be able to apply this insight by answering questions about repo from first principles.
• Be able to identify the differences between repo and securities lending and between repo and derivatives.
• Be able to compare and contrast repurchase transactions and buy/sell-backs and describe the alternative types of securities loan.
• Understand the business focus of the standard GMRA and the use of Annexes to amend standard provisions to tailor the agreement to specific business, legal and operational needs as well as the use of the forthcoming ICMA and ISLA Clause Taxonomies and Libraries.
• Be able to explain the difference between haircuts and initial margins, and apply them to exposure calculations.
• Be able to outline the calculation of Transaction and Net Exposures, including Net Margin, and the concepts of Repricing and Adjustment, and the structure of net exposure calculations under the GMSLA.
• Identify and follow the post-trade operational and risk management provisions in the GMRA and GMSLA, including those relating to the substitution of collateral, corporate events and failed settlement.
• Be able to outline the default procedures under the GMRA and GMSLA.
• Recognize the key legal issues affecting repos, available legal precedent, issues that might arise from the use of the GMRA and GMSLA in foreign jurisdictions and how to use legal opinions.
• Understand the role of tri-party collateral management, what tri-party agents do and do not do, and how use of a tri-party agent affects use of the GMRA and GMSLA.
• Understand what is meant by central clearing, the role of a CCP and how use of a CCP affects use of the GMRA.
• Be able to outline the principles of accounting for repo and securities lending.
• Be able to outline the key capital, leverage, liquidity regulations applying to repos and securities lending in Europe as well as settlement and reporting requirements.
• Be aware of the potential impact of sustainability requirements on the use of collateral in repo and securities lending.

Who should attend?

Although designed primarily for legal and documentation staff, the breadth of the course rigor provided by the documentary framework has made it very popular with staff with varied professional backgrounds and experience from a wide range of different types of institutions, including:

• Legal and documentation staff incl. legtech and fintech developers
• Risk management, regulatory, compliance, accounting and audit staff in both sell-side and buyside firms
• Regulators, policymakers and central bankers
• SFT desk and liquidity/treasury managers and dealers.
• Repo and securities lending market service and infrastructure-providers.

Venue:

Our classroom courses are delivered in-person at a confirmed location.

The Repo & Securities Lending under the GMRA-GMSLA course will be delivered in-person at the ICMA London offices across three full-days. Tea, coffee and light refreshments will be provided during the course but please note these courses are not catered. If you have any dietary requirements please let us know when you complete the registration form.

Delegates will be given access to our learning management system and the course materials before the live sessions, and will have access to those for a total of three months. During these three months you will have the option to keep working through the course materials at your own pace.

Delegate Fees:

ICMA & ISLA Members: EUR 3,300.00 + VAT (if applicable)
Non Members: EUR 4,100.00 + VAT (if applicable)

To register for this course, please download and complete the registration form and return to events@islaemea.org.

ISLA and the International Capital Market Association (ICMA) have partnered to run a virtual workshop across four days in November 2024 – 7, 8, 14 & 15.

Securities Lending has been an important activity within the securities marketplace for many years. Firms that choose to lend their equities and/or bonds do so in order to earn lending fees and to enhance their investment returns. Conversely, firms that choose to borrow securities typically do so primarily to meet delivery commitments and to receive sale proceeds in a timely fashion.

However, undertaking securities lending & borrowing transactions is not without risk. The mitigation of exposures is an essential daily task, involving the regular revaluation of both the lent/borrowed security and the associated collateral. Companies are also required to make margin calls on the counterparty and settlement of such margin calls.

Additionally, corporate actions may arise which can impact the lent security and/or securities collateral.

It is therefore of paramount importance that those responsible for processing such transactions possess a clear understanding of the risks involved, their potential exposures and critically, what mitigating measures are necessary.

Workshop Outcomes

By completing the course you will be able to:

• Have a strong grasp of the fundamentals of Securities Lending and be able to explain the transaction lifecycle
• Describe the types of market participants and appreciate why these firms engage in Securities Lending, and their impact on capital markets and retail investors
• Understand the operational, legal and regulatory risks and issues involved
• Comprehend the advantages/disadvantages of using different types of collateral
• Appreciate the impact that corporate actions have on the lent security and on securities collateral
• Discover some relevant anecdotes and Securities Lending case studies

Who should attend?

The course is suitable for personnel working within many departments of financial institutions such as operations, middle office, risk, legal, accounting and IT. The course is applicable to buy and sell-side firms, plus those working within central securities depositories and custodians.

The course is targeted towards those currently working within a securities lending department who would benefit from an all-round understanding of the topic. In addition, those who have had limited exposure to the topic but who require a greater understanding of the relationships between their work and securities lending & borrowing.

7, 8, 14 & 15 November 2024
Time: 10:00 – 13.30 CEST / 09:00 – 12:30 BST

Venue:

Livestreamed courses are delivered via video conferencing accessed on our digital learning platform, using the most effective pedagogical approaches and incorporating interactive functions like virtual breakout rooms.

The Securities Lending live sessions are delivered in four 3.5 hour sessions over the course of two weeks. You will be given access to the course materials before the live sessions, and will have access to those for a total of three months from the first live session. During these three months you will have the option to keep working through the course materials at your own pace.

Delegate Fees:

ICMA & ISLA Members: EUR 2,100.00 + VAT (if applicable)
Non Members: EUR 2,700.00 + VAT (if applicable)

For more information on programme recognition, the syllabus and further details covered by the workshop click on the button below.