* See Memorandum to SEC Rules Committee No. 60-97, dated June 13, 1997.
[9851]
April 17, 1998
TO: SEC RULES COMMITTEE No. 33-98
RE: ANNEX TO PSA MASTER REPO AGREEMENT FOR TRANSACTIONS IN
EQUITY SECURITIES
______________________________________________________________________________
The Bond Market Association and the Securities Industry Association recently finalized and
issued Annex VIII to the PSA Master Repurchase Agreement for use in connection with transactions in
equity securities and Guidance Notes relating to the Annex. The final annex reflects changes made to it
since it was last published for comment in June, 1997.* The Annex and the Guidance Notes are
attached.
The current scope of the PSA Master Repurchase Agreement encompasses transactions in all
types of securities, and was drafted in the context of a repo market comprised almost exclusively of
transactions in debt instruments. Annex VIII is intended to modify and supplement the Agreement in
certain respects to provide a framework in which parties may address the special practical and legal
issues raised by repurchase agreements specifically involving equity securities. The Guidance Notes
summarize the scope and key provisions of the Annex and identify certain additional issues which
parties entering into transactions in equity securities may wish to address.
Barry E. Simmons
Assistant Counsel
Attachments