Front-running and Global Master Repurchase Agreement: Difference between pages

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''Conduct risk - financial markets''
(GMRA).


In financial services, front-running is the unethiclal and likely criminally fraudulent practice of buying securities or making other trades to take advantage of private/confidential knowledge of a future event, for example a large purchase order from a client - an order for currency, shares, commodities, etc.
A framework agreement between the two parties to a repurchase agreement (repo), containing standard contractual provisions to apply to all the repo trades they enter into.


Distinguishing front-running (unacceptable, probably illegal) from [[pre-hedging]] (probably aceptable, even legal) is important for all concerned, but can be very difficult.  
The GMRA saves the need to agree these contractual provisions every time a trade is transacted.




==See also==
The GMRA is published by the International Capital Markets Association (ICMA).
* [[Conduct risk]]
* [[Fixed Income, Currencies and Commodities Markets Standards Board]]  (FMSB)
* [[Insider dealing]]
* [[Layering]]
* [[Market corners]]
* [[Pre-hedging]]
* [[Ramping]]
* [[Spoofing]]
* [[Squeeze]]
* [[Wash trading]]


[[Category:Context_of_treasury]]
 
[[Category:Accounting,_tax_and_regulation]]
== See also ==
[[Category:Ethics_and_corporate_governance]]
* [[International Capital Market Association]]
[[Category:Ethics]]
* [[Repurchase agreement]]
[[Category:Financial_risk_management]]
* [[ISDA Master Agreement]]
 
 
== Other links ==
1. [http://tiny.cc/fqqhow ACT briefing note]
 
2. [http://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/short-term-markets/Repo-Markets/frequently-asked-questions-on-repo/19-what-is-the-gmra/ What is the GMRA?]
 
[[Category:Compliance_and_audit]]

Latest revision as of 12:15, 22 February 2018

(GMRA).

A framework agreement between the two parties to a repurchase agreement (repo), containing standard contractual provisions to apply to all the repo trades they enter into.

The GMRA saves the need to agree these contractual provisions every time a trade is transacted.


The GMRA is published by the International Capital Markets Association (ICMA).


See also


Other links

1. ACT briefing note

2. What is the GMRA?

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