The new guide sets out best practice in initiating, margining and managing the life cycle of a repo. It also contains various annexes that (i) assist in understanding repo and the repo market; (ii) contain a useful glossary of repo terms; (iii) explain open, evergreen and extendible repo; and (iv) provide suggested forms of mini close-out notice and confirmation.
There is no substitute for a thorough review of the new guide. Nevertheless, and for the benefit of negotiators, we include in the table below a selection of best practice recommendations that immediately impact the documentation of repo using a standard form GMRA and/or confirmations thereunder. Some of these are motivated by recent case law and others by developments in market practice. They are over and above the usual negotiating points that arise under a GMRA. For further reading and background, see Repo and Stock Lending: A Practitioner's Guide (Globe Law and Business 2015).
Please contact your usual derivatives partner for further advice or assistance.
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