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Nafmii Repo Master Agreement

The recent ASIFMA-ICMA guide for repo in Asia provides an overview of all aspects of the evolution of the repo market in Asia and addresses three key questions: why is it important to develop the repo market in Asia? What are the main challenges for the repo market in Asia? The report identifies the main political challenges for the development of an international retirement market in Asia, in particular: while the NAFMII-Masteragrement (version 2007) and MASTERETS have been well received in the market, the intermediate position between the two masters has led to a number of technical and legal issues, notably with regard to the single agreement and the closing agreements. The NAFMII Masteragrement (2009 version) helps to allay these fears. We summarize the cfS`s latest report on its regulatory priorities. The context is that, for the first time in March 2004, the derivatives market in China received formal state support by adopting rules for derivatives activities by the China Banking Regulatory Commission (CBRC). In July 2006, SAFE and the China Foreign Exchange Trade System (CFETS) released the RMB-FX Forward and Swaps Principal (2006 agreement) to regulate all RMB-FX and RMB-FX swaps traded through CFETS. The 2006 agreement was the First Attempt by the Chinese authority to develop a “master-agreement” governed by Chinese law to integrate new concepts recognized in the international financial and derivatives market, such as the concept of a single agreement, asset provisions and clearing provisions. In August 2007, an updated version of the 2006 agreement was published by the RMB-FX Derivatives Master Agreement (version 2007) of SAFE and CFETS, which contained a new type of product, RMB-FX Cross-Currency Swaps. In October 2007, NAFMII (a self-regulating trade association for Chinese interbank market players, which works under the direction of the PBOC) has published a standardized series of master`s agreements and additional documents, including endorsements, performance assurance documents and product definitions (in collaboration with the NAFMII masteragrement (version 2007) to regulate all domestic derivatives transactions among members of the interbank market. Unlike the NAFMII masteragrement (version 2007), which adopted a multi-party model, the NAFMII masteragrement (2009 version) is developed in the form of a bilateral agreement. The bilateral approach to signature addresses concerns that a multi-party signature model, combined with the mandatory documentation requirement for a wide range of “financial derivatives” under the NAFMII Director Contract (version 2007), could cover certain products (. B, for example, structured deposits) that the parties have not regulated under the closing framework agreement. In accordance with the NAFMII masteragrement (version 2007), all onshore derivatives transactions concluded after the date of execution of the NAFMII Director`s Contract (version 2007) are automatically subject to such a master`s contract, regardless of the commercial intent of the parties.

The first Asia-Asia Green Bond Roundtable focused on the ability of capital markets to deliver green results to issuers and ethical investors.