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ICMA ERC Guide to best practice in the European Repo Market
With the prior approval of the ICMA International Repo and Collateral Council (IRCC) Committee, regional committees may enact trading guidelines or recommendations for their regional councils. Such guidelines or recommendations must be in the overall interest of improving efficiency or liquidity in the relevant market. The following guideline has been adopted with the approval of the IRCC Committee.

The Guide sets out standards for the orderly trading and settlement of repos. Its purpose is to help foster a smooth and orderly market in repo in Europe by recommending practices which market experience suggests can help avoid uncertainties or disagreements about transactions, and consequent delays or disruption to repo trading and settlement. The Guide also codifies market conventions, where this has been thought to be helpful, usually in response to queries from market participants.

The practices set out in the Guide are general recommendations only. Parties to repos are free to agree other terms, where they see fit. It is not necessarily a problem if recommended best practice is not followed, provided parties recognise the risks to which they may expose themselves as a result. The Guide has been written to assist staff in member firms of the ICMA ERCC, but other firms may find the Guide helpful. It presupposes some knowledge and experience of how the repo market operates.

The Guide was originally published in March 2014 and that version superseded the previously repo trading practice guidelines that had been published by the ICMA ERC* over a decade before. The latest version of the Guide, published in July 2015, is effective as dated.
It is the intention of the ICMA ERCC to continually monitor developments in the European Repo Market. Accordingly, the Guide will continue to remain under review and will be amended as warranted by any evolution in the agreed understanding of best practice. Because of this intention to periodically amend the Guide, the most up-to-date version will be available on the ICMA website for download and print. It will be for repo market participants to ensure that they periodically check the ICMA website to ensure that they have the most up-to-date version of the Guide.

For further information please contact ercc@icmagroup.org.

To access Frequently Asked Questions on repo, click here.

For information on the ICMA Executive Education course 'The ICMA Guide to Best Practice in the European Repo Market', click here.

*On 4 December 2015, the name of the European Repo Council (ERC) was changed to the European Repo and Collateral Council (ERCC).

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