Livestreamed
Live sessions: May 23, 24, 30 & 31
10.00-13.30 CET | Time Zone Converter


OVERVIEW
COURSE SYLLABUS
COURSE DETAILS
TEST YOUR KNOWLEDGE
Coming soon! Introduction to Repo - Online Self-Study course | Next start date: 1 January
Register your interest at education@icmagroup.org or call us at +44 07826 550 790

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 understand:
  • 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)

*Course fees will be changing in 2022 - register before Monday 6th December to benefit from early-bird pricing.


Course Trainers

Richard Comotto
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

  • European repo market infrastructure
    • execution venue including automatic and automated trading venues
    • matching
    • clearing
    • collateral management including tri-party repo
    • GC financing model
    • client-clearing models
  • Legal issues and the GMRA
    • basic legal issues in repo
    • what is a master repurchase agreement
    • what does the GMRA do?
    • architecture of the GMRA: main text, annexes & confirmations
    • ICMA legal opinions
  • Collateral management under the GMRA
    • initial margin & haircut
    • marking to market & variation margining
    • manufactured payments
    • substitution of collateral
    • what happens in a default under the GMRA?
    • what happens if there is a failure to deliver collateral?
  • Regulation
    • Basel III risk-weighted capital
    • Basel III Leverage Ratio
    • Basel III LCR & NSFR
    • EU SFTR
    • EU CSDR
        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: May 23, 24, 30 and 31
10.00-13.30 CEST | Time Zone Converter


Live sessions: October 27, 28 & November 3, 4
10.00-13.30 CEST | Time Zone Converter




Livestreamed course fees*

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

*Course fees will be changing in 2022 - register before Monday 6th December to benefit from early-bird pricing.

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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