Securities financing transactions (SFTs) serve a pivotal role in
providing liquidity and funding for financial market participants.
The most common types of SFTs are repurchase agreements and
securities lending transactions. To facilitate market participants
in conducting the SFTs in the cross-border market, a global
standard master agreement was formulated. The International Capital
Market Association (ICMA) published the first version of the Global
Master Repurchase Agreement ("GMRA") in 1992 and followed
by its revised versions in 1995, 2000 and 2011. On the other hand,
the International Securities Lending Association (ISLA) introduced
the Global Master Securities Lending Agreement ("GMSLA").
In practice, those GMRA and GMSLA are the most widely-used models
for the crossborder securities financing transactions. However,
this article will only focus on the introduction of the GMRA
guidelines in Indonesia.
