Livestreamed
Live sessions: November 3, 4, 10 and 11
10.00-13.30 CET | Time Zone Converter


OVERVIEW
COURSE SYLLABUS
COURSE DETAILS
TEST YOUR KNOWLEDGE
This introductory level course provides an overview on how the repo market is structured, the key players and key regulation and is ideal for those wanting a foundation-level overview of this topic. 

Course Outcomes

By completing the course you will be able to:
  • Types of repo and how repo is used in the market
  • Who uses repo
  • Pricing
  • Collateral
  • Counterparty risk
  • Describe the types of market participants and appreciate why these firms engage in SLB, and their impact on capital markets and retail investors
    Understand the operational, legal and regulatory risks and issues involved 
    Comprehend the advantages/disadvantages of using different types of collateral 
    Appreciate the impact that corporate actions have on the lent security and on securities collateral
    Discover some relevant anecdotes and SLB case studies

Who should attend?

This course is designed people with an interest in understanding the fundamental characteristics of the repo and collateral markets and personnel new to the field who wish to gain a broader view of the subject.

Certification and Programme Recognition

This course has been approved by the Securities & Futures Commission of Hong Kong for Continuous Professional Training (CPT).
ICMA is also a member of the CPD® Certification Service which helps organisations formalise knowledge into a structured and recognised approach to meet professional development expectations.

ICMA recommends that 20 learning hours can be associated with this course, based on attended/undertaken hours of study required to successfully complete the learning outcomes.

The course is certified by ICMA. A Certificate of Completion will be awarded to those who meet minimum attendance requirements. Please note that while course recordings will be made available to delegates, it is a course requirement that delegates meet the minimum attendance requirments to be eligible for a certificate. Please contact education@icmagroup.org if you have any questions regarding certification.

Please note that your course certificate of attendance or completion should be sufficient to satisfy any professional development requirements – if you require further evidence, please contact us at education@icmagroup.org.

Pricing

Members: EUR 1,650 + VAT (if applicable)
Non-members: EUR 2,050 + VAT (if applicable)



The course syllabus is divided into the following key topic areas:
  • What is a repo?
    • Basic mechanics & collateral criteria
    • Basic terminology
    • Legal structure
    • Economic operation (including accounting consequences)
    • Core uses: financing long and covering short positions in securities
  • Types of repo
    • Repurchase transactions v buy/sell-backs
    • Variants of repurchase transactions
    • Floating-rate repo
    • Open & evergreen repo
    • Extendible repo
    • Forward repo
    • Synthetic repo
    • Repo v securities lending
  • GC and specials markets
    • Range of repo collateral
    • General collateral
    • GC repo rate & spreads to other money market instruments
    • Specifics & specials
    • Special rates
    • What makes collateral go special?
  • How is repo used
    • Bond valuation
    • Secondary market
    • Primary market
    • Interest rate swaps & bond futures
    • Collateral transformation
    • Other uses
    Securities Lending & Borrowing (SLB) – The Fundamentals 
    What is Securities Lending?
    The Purpose: Why Do Lenders Lend & Borrowers Borrow?
    Participants & Structure
    Trading Strategies
    Examples
    SLB Trade Lifecycle - An Overview
    Short Selling, Naked Short Selling
    Locates, Trade Execution & Fails
    Margin
    Corporate Events
    Billing
    The Marketplace – Participants & Stakeholders
    Lenders, Borrowers and Intermediaries 
    Examples
    The Lender’s Perspective: Motivations and Considerations
    The Borrower’s Perspective: Motivations and Considerations
    Global custodians
    Third-party lending agents
    Central counterparties
    Anecdotes
    SLB Trade Lifecycle
    Pre-trading, Locates
    Trade execution
    Pre-settlement
    Settlement 
    Buy-ins
    Mark to Market 
    Margin calls
    Recall/return of lent settlements
    Fees & Billing
    Assets & Collateral
    Equity vs Fixed Income 
    Fundamental collateral concepts
    Margin: Purpose & use 
    Types of collateral
    Rehypothecation
    Legal Documentation
    GMSLA
    Securities lending agency agreement
    GMRA
    Updating Books & Records
    Securities bookkeeping: Definition & purpose
    Importance of updating books & records
    Updating books and records for lent/borrowed securities, cash and non-cash collateral, fees and rebates
    SLB and Corporate Actions
    Corporate actions: Overview 
    Income
    *Cash dividends
    *Lent securities
    *Short sale proceeds
    *Lent/borrowed equity
    Voting 
    Withholding tax
    Risks in Securities Lending & Borrowing 
    Market Risk
    Credit Risk
    Operational Risk
    Legal Risk
    Reputational Risk 
    Regulation
    Introduction
    EU short selling & financial transactions tax
    CSDR 
    Reporting to a central trade repository
    Recent SLB Scandals & Controversies
    The Lehman saga uncover

Livestreamed Course


ICMA courses are delivered via video conferencing accessed on our digital learning platform, using the most effective pedagogical approaches and incorporating interactive functions like virtual breakout rooms.

The Introduction to Repo live sessions are delivered in four 3.5 hour sessions over the course of two weeks. You will be given access to the course materials before the live sessions, and will have access to those for a total of four weeks from the first live session. During these four weeks you will have the option to keep working through the course materials at your own pace.

Live sessions: November 3, 4, 10 and 11
10.00-13.30 CET | Time Zone Converter




Livestreamed course fees

Members: EUR 1,650 + VAT (if applicable)
Non-members: EUR 2,050 + VAT (if applicable)

For security reasons, delegates who have not registered in advance will not be admitted to the live sessions.

Please note:
  • All payments must be made in Euro.
  • Invoices for single registrations are subject to an additional Euro 50 to cover administration costs*. No administration fee applies for invoices covering two or more registrations.
*Administration costs cover the provision of supporting documents, which are often requested along with the invoice, to become an approved supplier.



Contact

Should you have any queries, please contact education@icmagroup.org.



Test your knowledge

Financing
Investment
Risk management
GESLA
GMRA
GMSLA
Pledge
Title transfer
Lien
The repo buyer
The repo seller
At the beginning
Throughout the trade
At the end

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