Global Master Repurchase Agreement for Australia

Global Master Repurchase Agreement Template for Australia

The Australian law-governed Global Master Repurchase Agreement is a standardized contract that establishes the framework for conducting repurchase (repo) transactions between financial institutions and other eligible counterparties. This comprehensive agreement sets out the terms and conditions for buying and selling securities with a commitment to reverse the transaction at a future date. It incorporates specific provisions compliant with Australian financial regulations, including the Corporations Act 2001 and the Personal Property Securities Act 2009, while maintaining the international standards for repo trading. The document addresses crucial aspects such as margin maintenance, default procedures, close-out netting, and risk management provisions tailored to the Australian legal and regulatory environment.

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What is a Global Master Repurchase Agreement?

The Global Master Repurchase Agreement (GMRA) is essential for parties engaging in repurchase transactions in the Australian financial markets. This agreement is typically used when two parties wish to enter into a series of repo transactions under a single master agreement, providing efficiency and reducing documentation requirements. The document incorporates Australian legal and regulatory requirements while following the international GMRA framework, making it suitable for both domestic and cross-border transactions. It includes comprehensive provisions for transaction mechanics, collateral management, events of default, and close-out netting, along with Australia-specific provisions regarding security interests and regulatory compliance. The agreement is particularly relevant in the context of liquidity management, securities financing, and monetary policy operations within the Australian financial system.

What sections should be included in a Global Master Repurchase Agreement?

1. Parties: Identification of the contracting parties and their legal status

2. Background: Context of the agreement and general purpose of entering into repo transactions

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Initiation and Confirmation: Procedures for initiating transactions and confirmation requirements

5. Margin Maintenance: Rules for calculating and maintaining margin, including margin transfers

6. Income Payments: Treatment of income on purchased securities during the transaction

7. Payment and Transfer: Mechanics of payments and securities transfers

8. Contractual Currency: Specification of payment currencies and exchange rate provisions

9. Substitution: Rules governing substitution of purchased securities

10. Representations: Basic representations and warranties of the parties

11. Events of Default: Definition of default events and their consequences

12. Tax Event: Treatment of tax-related issues and obligations

13. Interest on Default: Interest calculations for defaulted payments

14. Set-off: Rights of set-off between parties

15. Notices and Other Communications: Communication procedures between parties

16. Entire Agreement and Severability: Integration clause and severability provisions

17. Governing Law: Specification of Australian law as governing law

18. Dispute Resolution: Procedures for resolving disputes between parties

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

1. Agency Transactions: Include when parties may act as agents for third parties

2. Additional Events of Default: Include when parties require specific default triggers beyond standard events

3. Buy/Sell Back Transactions: Include when parties intend to enter into buy/sell back transactions

4. Forward Transactions: Include when parties intend to enter into forward repos

5. Electronic Trading: Include when parties will use electronic trading platforms

6. Foreign Exchange Risk: Include when transactions involve multiple currencies

7. Central Bank Arrangements: Include when transactions involve central bank operations

8. Force Majeure: Include when parties want specific force majeure provisions beyond standard terms

What schedules should be included in a Global Master Repurchase Agreement?

1. Schedule 1 - Form of Confirmation: Standard form for transaction confirmations

2. Schedule 2 - Base Currency Equivalent: Methodology for currency conversions

3. Schedule 3 - Eligible Securities: List and characteristics of securities eligible for transactions

4. Schedule 4 - Agency Terms: Detailed terms for agency transactions if applicable

5. Schedule 5 - Buy/Sell Back Terms: Specific terms for buy/sell back transactions if applicable

6. Schedule 6 - Australian Law Addendum: Specific provisions required under Australian law

7. Annex I - Margin Parameters: Detailed margin ratios and thresholds

8. Annex II - Electronic Messaging: Procedures and terms for electronic communications

9. Annex III - Tax Forms: Required tax documentation and forms

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Security Agreement

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Banking

Securities Trading

Investment Management

Insurance

Government and Public Sector

Asset Management

Treasury Services

Capital Markets

Financial Technology

Relevant Teams

Legal

Treasury

Trading

Operations

Risk Management

Compliance

Finance

Documentation

Credit

Regulatory Reporting

Collateral Management

Fixed Income

Securities Operations

Relevant Roles

Legal Counsel

Treasury Manager

Repo Trader

Securities Operations Manager

Risk Manager

Compliance Officer

Financial Controller

Trading Operations Manager

Documentation Specialist

Fixed Income Trader

Collateral Manager

Chief Financial Officer

Legal Documentation Manager

Credit Risk Officer

Regulatory Reporting Manager

Industries
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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