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Repurchase Agreement for the United Kingdom

Repurchase Agreement Template for England and Wales

A Repurchase Agreement under English and Welsh law is a financial contract where one party sells securities to another party while simultaneously agreeing to repurchase them at a later date for a specified price. This agreement is commonly used for short-term financing and liquidity management in financial markets. The document governs the terms of the transaction, including pricing, margin maintenance, events of default, and close-out procedures, while operating within the framework of English financial services legislation and regulations.

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What is a Repurchase Agreement?

Repurchase Agreements are essential instruments in modern financial markets, providing a secure method for short-term lending and borrowing using securities as collateral. Under English and Welsh law, these agreements are widely used by financial institutions for liquidity management, financing, and securities lending. The document establishes the legal framework for the transaction, including initial sale, repurchase obligations, margin maintenance, and default scenarios. It incorporates key protections under UK financial regulations and typically follows internationally recognized standards such as the GMRA while maintaining English law specificity.

What sections should be included in a Repurchase Agreement?

1. Parties: Identification of buyer and seller with full legal details

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Purchase and Sale: Core transaction terms including securities, pricing, and transfer obligations

5. Margin Maintenance: Provisions for margin calls and transfers

6. Income Payments: Treatment of income on purchased securities

7. Events of Default: Circumstances constituting default and consequences

8. Close-out and Netting: Procedures for termination and settlement

What sections are optional to include in a Repurchase Agreement?

1. Buy-in: Provisions for failure to deliver securities - used when parties want specific remedies for failed deliveries

2. Agency Provisions: Terms for transactions conducted through agents - used when one or both parties act as agents

3. Tax Provisions: Specific tax treatment and gross-up obligations - used for cross-border transactions or specific tax considerations

What schedules should be included in a Repurchase Agreement?

1. Confirmation Form: Standard form for confirming individual transactions

2. Eligible Securities: List of securities acceptable for transactions

3. Margin Percentages: Agreed haircuts and margin ratios for different security types

4. Forms of Notices: Standard forms for various notices under the agreement

5. Agency Terms: Detailed terms for agency transactions if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Security Agreement

Cost

Free to use
Relevant legal definitions






































Clauses

































Industries

Financial Services and Markets Act 2000 (FSMA): Primary legislation establishing the regulatory framework for financial services in the UK and setting requirements for authorized persons/entities

Financial Collateral Arrangements (No. 2) Regulations 2003: Implements EU Directive 2002/47/EC, governs the treatment of financial collateral and close-out netting provisions

Companies Act 2006: Governs corporate capacity and authority, including directors' duties and powers

Insolvency Act 1986: Regulates the treatment of transactions in insolvency and set-off/netting provisions

FCA/PRA Regulations: Regulatory guidelines and requirements from the Financial Conduct Authority and Prudential Regulation Authority

Bank of England Repo Regulations: Specific regulations and guidelines from the Bank of England regarding repurchase agreements

UK EMIR: European Market Infrastructure Regulation as retained in UK law post-Brexit

Global Master Repurchase Agreement (GMRA): Industry standard documentation published by the International Capital Market Association (ICMA)

Money Laundering Regulations 2017: Regulations governing anti-money laundering requirements and procedures

UK Market Abuse Regulation: Regulations preventing market abuse and insider trading, as retained in UK law

Settlement Finality Regulations 1999: Regulations governing the finality of settlements in payment and securities settlement systems

Financial Services (Banking Reform) Act 2013: Legislation implementing structural and other reforms to the UK banking sector

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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