ICMA publishes updated Guide to Best Practice in the European Repo Market


2 November 2023 ICMA’s European Repo and Collateral Council (ERCC) has today published an updated version of the ERCC Guide to Best Practice in the European Repo Market

The ERCC Guide is a flagship document for ICMA and provides detailed guidance, best practice recommendations, and clarifications that are intended to support the well-organized trading and settlement of repos. Comprising nearly 150 pages, the ERCC Guide is among the most substantial and well-established industry self-regulatory guidance across the entire financial market.

By setting standards and best practices the Guide helps to avoid uncertainty and disagreements among market participants, helping to foster a more efficient and orderly repo market in Europe and beyond.

This latest document reflects 18 months of consultations with ERCC members and has led to updates in several key areas of best practice including:

  • Interest claims and CSDR cash penalties
  • Compounding of floating repo rates
  • Repo re-rates
  • Ways of cleaning up accrued interest
  • Re-sizing repos
  • Late manufactured payments
  • Open, evergreen, extendible repos

For easier comparison, the Guide itself was published along with a blackline version which highlights all the latest changes, as well as a full list of material changes.

The ERCC Guide to Best Practice in the European Repo Market was first published in 2014 and has since then been regularly reviewed and updated to make sure that the document continues to accurately reflect current market practice. The review process is driven by a dedicated working group, the ERCC’s Best Practice Working Group, with input from both the ERCC Committee and the ERCC Operations Group. Members who are interested to get involved in the best practice discussions or the ERCC more broadly, please reach out to ercc@icmagroup.org. 

 Download the ERCC Guide to Best Practice in the European Repo Market.

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