Common use of Overall Scope and Definitions Clause in Contracts

Overall Scope and Definitions. The scope of this document is to define and illustrate the use of ISO 15022 formats for the settlement of a securities (reverse) repurchase agreement. It refers to a type of transaction in which a seller acquires cash by selling securities (used as collateral) and simultaneously agrees to repurchase the same or similar securities at a future (may be open) time. [NOTE: ISO20022 formats and associated business process requirements will be incorporated into this market practice document as part of a future effort] This operation implies no change of beneficial ownership. If there is a change of beneficial ownership, the operation is called a sell and buy-back. Today's situation, in terms of how the settlement of a repo should be instructed, is much diversified. Some countries/institutions require only one message, others two-messages and yet others one or two messages depending on the type of repo. No solution will consequently suit everybody. The ISO 15022 standard offers the possibility to handle repo settlement using one message. According to many national groups, it seems difficult to drop the two-messages option as it is widely used today. In order to avoid a blockage in the discussion that would just lead to the emergence of even more practices, we have documented the two practices herein, i.e. one or two-messages market practice. NMPGs should find an agreement at National level on which one of the two variants (one or two messages) should be their market practice. Each NMPG having Repo in their market should then publish their choice. This should not be decided at individual institution level if possible. On the question of whether there will ever be a single global market practice for repos – one message vs. many messages – the SMPG group concluded that this should not be addressed immediately and should be part of the modelling exercise for future UNIFI (ISO 20022) messages. As such, this document contains sections for both single and multi message methods. Finally, this market practice provides global minimum requirements for the settlement of a repo. NMPGs are invited to document any country specific requirements in their Country MP document. The document only refers to bilateral repo. As we are mainly looking at repo on a settlement point of view, we will always name: • the party which receive cash and deliver securities, the seller • the party which deliver cash and receive securities, the buyer

Overall Scope and Definitions. ‌ The scope of this document is to define and illustrate the use of ISO 15022 formats for the settlement of a securities (reverse) repurchase agreement. It refers to a type of transaction in which a seller acquires cash by selling securities (used as collateral) and simultaneously agrees to repurchase the same or similar securities at a future (may be open) time. [NOTE: ISO20022 formats and associated business process requirements will be incorporated into this market practice document as part of a future effort] This operation implies no change of beneficial ownership. If there is a change of beneficial ownership, the operation is called a sell and buy-back. Today's situation, in terms of how the settlement of a repo should be instructed, is much diversified. Some countries/institutions require only one message, others two-messages and yet others one or two messages depending on the type of repo. No solution will consequently suit everybody. The ISO 15022 standard offers the possibility to handle repo settlement using one message. According to many national groups, it seems difficult to drop the two-messages option as it is widely used today. In order to avoid a blockage in the discussion that would just lead to the emergence of even more practices, we have documented the two practices herein, i.e. one or two-messages market practice. NMPGs should find an agreement at National level on which one of the two variants (one or two messages) should be their market practice. Each NMPG having Repo in their market should then publish their choice. This should not be decided at individual institution level if possible. On the question of whether there will ever be a single global market practice for repos – one message vs. many messages – the SMPG group concluded that this should not be addressed immediately and should be part of the modelling exercise for future UNIFI (ISO 20022) messages. As such, this document contains sections for both single and multi message methods. Finally, this market practice provides global minimum requirements for the settlement of a repo. NMPGs are invited to document any country specific requirements in their Country MP document. The document only refers to bilateral repo. As we are mainly looking at repo on a settlement point of view, we will always name: • the party which receive cash and deliver securities, the seller • the party which deliver cash and receive securities, the buyer

Overall Scope and Definitions. The scope of this document is to define and illustrate the use of ISO 15022 formats for the settlement of a securities (reverse) repurchase agreement. It refers to a type of transaction in which a seller acquires cash by selling securities (used as collateral) and simultaneously agrees to repurchase the same or similar securities at a future (may be open) time. [NOTE: ISO20022 formats and associated business process requirements will be incorporated into this market practice document as part of a future effort] This operation implies no change of beneficial ownership. If there is a change of beneficial ownership, the operation is called a sell and buy-back. Today's situation, in terms of how the settlement of a repo should be instructed, is much diversified. Some countries/institutions require only one message, others two-messages and yet others one or two messages depending on the type of repo. No solution will consequently suit everybody. The ISO 15022 standard offers the possibility to handle repo settlement using one message. According to many national groups, it seems difficult to drop the two-messages option as it is widely used today. In order to avoid a blockage in the discussion that would just lead to the emergence of even more practices, we have documented the two practices herein, i.e. one or two-messages market practice. NMPGs should find an agreement at National level on which one of the two variants (one or two messages) should be their market practice. Each NMPG having Repo in their market should then publish their choice. This should not be decided at individual institution level if possible. On the question of whether there will ever be a single global market practice for repos – one message vs. many messages – the SMPG group concluded that this should not be addressed immediately and should be part of the modelling exercise for future UNIFI (ISO 20022) messages. As such, this document contains sections for both single and multi message methods. Finally, this market practice provides global minimum requirements for the settlement of a repo. NMPGs are invited to document any country specific requirements in their Country MP document. The document only refers to bilateral repo. As we are mainly looking at repo on a settlement point of view, we will always name: •  the party which receive cash and deliver securities, the seller •  the party which deliver cash and receive securities, the buyer

Overall Scope and Definitions. The scope of this document is to define and illustrate the use of ISO 15022 formats for the settlement of a securities (reverse) repurchase agreement. It refers to a type of transaction in which a seller acquires cash by selling securities (used as collateral) and simultaneously agrees to repurchase the same or similar securities at a future (may be open) time. [NOTE: ISO20022 formats and associated business process requirements will be incorporated into this market practice document as part of a future effort] This operation implies no change of beneficial ownership. If there is a change of beneficial ownership, the operation is called a sell and buy-back. Today's situation, in terms of how the settlement of a repo should be instructed, is much diversified. Some countries/institutions require only one message, others two-messages and yet others one or two messages depending on the type of repo. No solution will consequently suit everybody. The ISO 15022 standard offers the possibility to handle repo settlement using one message. According to many national groups, it seems difficult to drop the two-messages option as it is widely used today. In order to avoid a blockage in the discussion that would just lead to the emergence of even more practices, we have documented the two practices herein, i.e. one or two-messages market practice. NMPGs should find an agreement at National level on which one of the two variants (one or two messages) should be their market practice. Each NMPG having Repo in their market should then publish their choice. This should not be decided at individual institution level if possible. On the question of whether there will ever be a single global market practice for repos – one message vs. many messages – the SMPG group concluded that this should not be addressed immediately and should be part of the modelling exercise for future UNIFI (ISO 20022) messages. As such, this document contains sections for both single and multi message methods. Finally, this market practice provides global minimum requirements for the settlement of a repo. NMPGs are invited to document any country specific requirements in their Country MP document. The document only refers to bilateral repo. As we are mainly looking at repo on a settlement point of view, we will always name: • the party which receive cash and deliver securities, the seller • the party which deliver cash and receive securities, the buyer