The GMRA Framework Agreement as an Example of Standard Documentation on the International REPO Market

The paper provides a general description of the contractual standards of the International Capital Markets Association (ICMA) for concluding and executing over-the-counter repo agreements and focuses on the GMRA 2011 — the most relevant standard agreement of this Association. The author underlines insufficiency of international unification of legal regulation in the field of securities markets, which leads to the need for contractual unification by the participants of such markets themselves. The paper consistently examines general characteristics of the repo agreement, work of the Association in preparing standard documentation, the mechanism of a crossborder repo agreement in accordance with the GMRA 2011 agreement. It is noted that the provisions of this agreement on the procedure for concluding individual repo transactions are highly flexible, and the rights of a party in case of violation of the agreement are protected using the liquidation netting mechanism. The advantages of using ICMA documentation include the availability of country applications that bring it into line with the requirements of local legislation in certain countries, as well as regular updating of standard contracts. Successful application of GMRA 2011 in transactions with Russian counterparties is facilitated by its recognition by the Russian regulator as approximate terms of the repo agreement, a special country application, and translation of the agreement into Russian. In the context of sanctions pressure and the presence of Russian anti-sanctions, the possibility of using the GMRA agreement in transactions with counterparties from «unfriendly» countries seems difficult. However, ICMA documentation can still be used for repo transactions with parties incorporated in other regions, making it possible to refocus the Russian financial sector to Asian markets.

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