Capital Markets Associations Produce Guide to Repo in Asia

Consistent, internationally-recognised standards of best practice for trading repo across borders are essential for the further development of repo in Asia, say two capital markets associations.

The Asia Securities Industry & Financial Markets Association (ASIFMA) has teamed up with the International Capital Markets Association (ICMA) to produce a guide on the repo market in Asia.

In the guide, ASIFMA lays out the policy and regulatory foundation for efficient Asian repo market development and together, the two associations lay out best practices across the repo trade lifecycle.

In addition to laying out best practice, it also looks at why it is important to develop the repo market in Asia, citing benefits to the real economy, and the main policy challenges, including divergent legal systems across the region, unfavourable tax regimes, lack of liquidity and insufficient creditor protection in the event of bankruptcy.