Find out more about the GMRA
Regulators require repo transactions to be documented under robust written legal agreements, such as the GMRA, supported by regularly updated legal opinions, as a condition of recognising the reduction of credit risk by collateral and close-out netting in the calculation of regulatory capital requirements and large exposures. Reasoned legal opinions are required to confirm that, in the event of a legal challenge, the relevant courts and administrative authorities would find that, where a counterparty fails owing to default, bankruptcy, liquidation or any other similar circumstance, the regulated firm’s claims and obligations pursuant to the GMRA would be limited to a net sum under the law of the relevant jurisdiction(s), and which meets certain other requirements. The GMRA legal opinions which ICMA makes available to its members assist them in fulfilling these regulatory requirements are available here. A list of the jurisdictions covered by the opinions is provided below.
|GMRA LEGAL OPINIONS - JURISDICTION COVERAGE|
British Virgin Islands
Curaçao and Sint Maarten
United Arab Emirates