The Law & Practice of True Sales

The Law & Practice of True Sales

A new title called The Law & Practice of True Sales by Nicholas Grandage and Daniel Franks, both partners at Norton Rose Fulbright LLP will be available to buy from 7 December 2015 at  Full product details available below.

Interview with the authors

Nick Grandage and Daniel Franks both partners at Norton Rose Fulbright LLP discuss the major developments over the last twelve months in finance law.


Daniel - In a word, regulation.  While increased regulation has affected all financial markets (most notably, EMIR and Dodd Frank in the context of OTC derivatives), the repo markets are finding themselves at the centre of a range of regulatory initiatives.

Some of the regulatory reform is aimed specifically at repos or, to be more precise, at the “shadow banking” sector which regulators are concerned has potential to be of systemic importance while previously having been subject to less regulation.  For example, the Securities Financing Transaction Regulations require for the first time the mandatory reporting of repos (and other transactions), with a view to promoting transparency in the market.  They also seek to impose certain limits on rights of reuse over collateral, which has caused much debate given how fundamental such a right is in the financial markets (thankfully, the final draft appears to adopt an approach that is somewhat more consistent with the way in which the markets operate).

Basel III and CRD IV/CSDR have also had an impact on the profitability (and feasibility) of repos, to such an extent that some market participants have been looking carefully at the way in which they use repos, and whether they can be profit centres in their own right of simply support other businesses of the institution.

Other types of regulatory reform appear to have caught repos inadvertently – there was some debate when the first draft of the CSD Regulations were published as to whether the mandatory buy-in rules were intended to capture repos, rather than simply spot sales of securities.  Again, this has required institutions to look at the way in which the repo model works, and to adapt accordingly.  Some have also questioned whether pre- and post-trade transparency

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About the author:

Neeta has been working as a paralegal in Banking and Insolvency for the past 4 and a half years.

She started her legal career at Allen & Overy in 2008 in the midst of the global financial crisis and the collapse of Lehmans where she gained most of her experience.

Neeta also did a short stint in litigation at the Revenue and Customs Prosecutions Office. Neeta graduated with a 2:1 honours degree from University of London, Queen Mary College and went on to obtain a distinction from the College of Law in the Legal Practice Course. She moved to Lexis®PSL in April 2013.