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Master Repurchase Agreement Template for England and Wales

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Key Requirements PROMPT example:

Master Repurchase Agreement

"Need a Master Repurchase Agreement under English law for our UK bank to engage in repo transactions with multiple hedge fund counterparties, with specific provisions for agency trading and enhanced margin requirements to be implemented by March 2025."

What is a Master Repurchase Agreement?

The Master Repurchase Agreement is essential for parties engaging in repo transactions within the English and Welsh jurisdiction. It provides a comprehensive framework for managing multiple repo trades under a single agreement, reducing documentation overhead and legal uncertainty. This document is particularly crucial for financial institutions seeking efficient collateral management and short-term financing solutions. The MRA addresses key aspects including transfer of title, margin maintenance, default procedures, and close-out netting, while ensuring compliance with UK financial regulations and market practices.

What sections should be included in a Master Repurchase Agreement?

1. Parties: Identification of buyer and seller, including registration details and addresses

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Purchase and Sale: Core repurchase obligations and mechanics

5. Margin Maintenance: Rules for calculating and maintaining margin requirements

6. Income Payments: Treatment of income on purchased securities

7. Events of Default: Definition of default events and consequences

8. Close-out and Netting: Procedures for termination and settlement

What sections are optional to include in a Master Repurchase Agreement?

1. Buy/Sell Back Transactions: Special provisions for buy/sell back transactions when parties intend to enter into such transactions

2. Agency Transactions: Provisions for agency trading when one party acts as agent for third parties

3. Tax Provisions: Specific tax treatment and gross-up obligations for cross-border transactions

What schedules should be included in a Master Repurchase Agreement?

1. Form of Confirmation: Standard form for transaction confirmations

2. Eligible Securities: List of securities acceptable as collateral

3. Margin Ratios: Agreed haircuts for different security types

4. Agency Terms: Detailed provisions for agency transactions

5. Buy/Sell Back Terms: Supplemental terms for buy/sell back transactions

6. Systems and Operations: Operational procedures and contact details

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

FSMA 2000: Financial Services and Markets Act 2000 - Primary UK legislation governing financial services regulation and oversight

Financial Collateral Arrangements Regulations 2003: Regulations implementing EU Directive on financial collateral arrangements, governing security interests and title transfer arrangements in financial transactions

Companies Act 2006: Principal legislation governing company law in the UK, relevant for corporate aspects of repurchase agreements

Insolvency Act 1986: Key legislation governing insolvency proceedings and creditor rights, crucial for default and close-out provisions

Banking Act 2009: Legislation establishing special resolution regime for banks and other financial institutions

FCA Regulations: Financial Conduct Authority rules and guidelines governing conduct in financial markets and consumer protection

PRA Requirements: Prudential Regulation Authority requirements focusing on capital adequacy and risk management

UK EMIR: European Market Infrastructure Regulation as retained in UK law, governing derivatives and clearing obligations

UK MAR: UK Market Abuse Regulation covering market manipulation and insider trading provisions

Basel III Implementation: UK implementation of Basel III standards affecting capital requirements and risk management

ISDA Principles: International Swaps and Derivatives Association principles relevant to trading relationships and documentation

GMRA Standards: Global Master Repurchase Agreement standards providing international market practice guidelines

Retained EU Law: Post-Brexit retained EU legislation relevant to repo transactions and financial services

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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