The International Capital Market Association (ICMA) announced it would develop a clause taxonomy and library. The goal is to standardize and improve efficiencies in the process of negotiating and managing repo transaction documentation.
ICMA’s aim is to build an industry-wide, foundational Global Master Repurchase Agreement (GMRA) clause taxonomy that would support the association’s goal in promoting resilient, well functioning, international and globally coherent cross-border debt securities markets.
The clause library will help introduce industry-validated clauses that will reduce scope for error and problematic or inconsistent drafting. It will improve the efficiency of negotiations by allowing lawyers and negotiators to focus on the most substantive and consequential clauses and issues. Furthermore, the GMRA clause library would allow for greater visibility in meeting business, regulatory and operational requirements.
In addition, the increased standardization and digitization is expected to drive more accurate data capture and efficient repo trade processing, within firms and across the market.
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