Politics & Regulation Regulation

ESMA consults on repo agreements for UCITS


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