One of the main points of this proposed regulation was the establishment of rehypotheque governance by setting minimum conditions for the transactions of the parties concerned, such as the existence of a prior written agreement, full compliance with the terms of that agreement, and complete information on the potential risks in the event of a counterparty failure. and the prior transfer of collateral to the counterparty`s account. An agreement to be used when the parties enter into transactions to purchase or sell mortgage-backed securities and other debt-backed securities and other securities that may be defined, including issuance, TBA, dollar rolls and other transactions that result in or may result in deferred issuance of securities. Press Release – A use agreement where the parties can make transactions in which a party (a “seller”) agrees to transfer securities or other assets against the transfer of funds by the buyer to the other (a “buyer”), with the buyer`s agreement to transfer those securities to the seller on a date or on request against the transfer of funds by the seller. A use agreement where the parties can make transactions in which one party (a “lender”) lends certain guarantees against a guarantee transfer to the other party (a “borrower”). The main elements that ISDA has put forward to achieve this are the development of common legal definitions in the derivatives and LFS markets, the documentation of derivatives and LFS under a common framework contract, and the obtaining of a number of legal opinions in jurisdictions around the world. The European Commission believes that a requirement for notification through central repositories could solve the problems identified. Sign up today and never miss the latest news or editions Financing transactions on securities covered by this settlement are shadow banking transactions that mainly include: Here are the Master Buyback, the Global Master Repurchase Agreement, the Master Securities Loan Agreement and the Master Securities Forward Transaction Agreement. The development of common standards and taxonomy will facilitate automation and interoperability between derivatives and SFT markets. In order to closely monitor market trends for companies operating in the shadow banking system, particularly in the area of securities financing transactions, the Commission believes that transparency obligations need to be implemented. “Changes are never easy, but we believe that the current trend towards more digitization and automation, and the initiative of financial institutions to improve operational efficiency and capital efficiency, it is important that we start a debate on the benefits of a narrower approach.” ISDA believes that the time has come for the type of discussion described in its latest white paper, the full version can be read on this link.