ICMA publishes GMRA Digital Assets Annex
19 August 2024 ICMA is pleased to announce the publication of the Digital Assets Annex, a significant new addition to the Global Master Repurchase Agreement (GMRA).
The Digital Assets Annex has been prepared as part of a joint project between ICMA and ISLA aiming to bring consistency to the legal terms used by market participants when trading certain digital assets under the GMRA 2011 and GMSLA 2010. The Annex was developed by the Digital Assets Legal Working Group run by ICMA & ISLA, with Clifford Chance appointed as counsel.
The Digital Assets Annex provides a standardised framework and set of terms which can be used to document repo transactions involving digital cash, digital securities (including tokenised traditional securities), or asset-backed digital assets. The Annex clarifies that in the GMRA 2011, references to Securities includes Platform Transferred Securities, and references to cash or currency encompasses Digital Cash. The Annex also seeks to address some of the commercial considerations that arise as a result of the operational feasibility of intra-day repo transactions, which have been made possible by the shorter settlement times offered by digital assets and technological platforms.
Michael Brown, partner at Clifford Chance commented "We're delighted to have worked with ICMA, ISLA and the combined Digital Assets Legal Working Group to produce the Digital Assets Annex, which leverages the experience of the working group in respect of the opportunities in the SFT market presented by technological developments over the last few years. We hope the Digital Assets Annex will assist the further growth of the market by presenting a common approach that firms can leverage for transactions referencing the relevant categories of digital asset."
Deena Seoudy, Senior Director and Associate Counsel at ICMA commented “We are thrilled with the launch of the Digital Assets Annex, created in partnership with ISLA, Clifford Chance, and the Digital Assets Legal Working Group. This Annex represents a significant milestone in the evolution of the GMRA, and we are confident it will support the continued growth and innovation of digital assets within the repo market.”
To promote ICMA members’ familiarity with the Digital Asset Annex, ICMA will partner with Clifford Chance to run a webinar in September that will provide an overview of how the Annex works and its various features, as well as an opportunity for members to ask any questions. Further details on the webinar and how to register will follow.
To download the Digital Assets Annex and accompanying guidance note, click here.
