- Posted by Bryony Widdup
- On 11 April 18
- Capital Requirements, Enforcement, GMRA, ICMA, Legal opinions
The International Capital Markets Association obtains and annually updates legal opinions for its members. The opinions cover enforceability of the GMRA and associated documents including recharacterisation risk (in respect of both the transfer of securities and the transfer of margin) and the effect of netting provisions (including as required with regard to financial institution regulatory capital and large exposure requirements). All of the legal opinions cover companies, banks and securities dealers as counterparties and over two-thirds additionally cover insurance companies, hedge funds and mutual funds. It is further noted that this is the last year the opinion updates will cover the GMRA 1995 which is being phased out from 2019. The opinions are available to ICMA member firms, including DLA Piper, for use in connection with relevant capital markets transactions.