The major European financial regulator is consulting upon
the appropriate treatment of repurchase and reverse repurchase
agreements for UCITS, according to a consultation paper
published today (25 July 2012).
The objective of the consultation is to ensure that the
guidelines that the European Securities and Markets Authority
"wishes to develop are an appropriate regime for the treatment
of repo and reverse repo with regard to the recallability of
assets subject to these arrangements."
The 58-page report states: "This regime is designed to
ensure that UCITS which enter into repo and reverse repo
arrangements can continue to execute redemptions."
"ESMA proposes a distinct regime for repo and reverse repo