Global Master Securities Lending Agreements

A user agreement where the parties may enter into transactions in which one party (a « lender ») lends certain securities to the other party (a « borrower ») against a transfer of collateral. Since the early 90s, ISLA has been the standard legal framework for the securities lending industry. GMSLA has become a legal default agreement in European markets, with the latest version being the 2018 Security Interest over Collateral version. It was a cooperation between ISLA, its members and Clifford Chance. a user agreement in which the parties may enter into transactions in which one party (a « Seller ») agrees to transfer securities or other assets to the other (a « Buyer ») against the transfer of funds by the Buyer, with a simultaneous agreement by the Buyer to transfer such securities to the Seller at any given time or upon request; against the transfer of funds by the seller. ISLA members will have access to a number of premium content, including legal agreements, annexes and legal working group protocols. The contract documentation confirms the day-to-day trading activities in our market, from framework agreements such as the GMSLA, which are signed at the beginning of a relationship, to tailor-made confirmations of trade by trade that are bilaterally agreed between counterparties. ISLA is currently developing digital versions of its commercial framework contracts. In particular, the development of an online digital environment will enable companies to produce, supply, trade and execute documents, as well as to collect, process and store data from these documents. Over time, this will be an integral part of any future digitized regulatory notification system. ISLA wants to work across all sectors to better understand how the digital formats of our framework contracts benefit our members and the industry.

ISLA cooperates with legal partners with member companies to exploit expertise and jointly examine legal issues and the possible impact of regulatory changes that may affect the legal framework of the securities lending market. > After the collapse of Lehman Brothers, which was a large borrower, market participants had to witness liquidation processes in practice. . . .