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.

Introduction to Repo

LivestreamedLive sessions: November 3, 4, 10 and 1110.00-13.30 CET | Time Zone Converter

Livestreamed Course

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