ISLA publishes 2026 GMSLA netting opinions
14 April 2026 UK
Image: joeycheung/stock.adobe.com
The International Securities Lending Association (ISLA) has published its 2026 netting opinions, providing legal certainty for the title transfer versions of the Global Master Securities Lending Agreement (GMSLA).
According to ISLA, the 2026 suite marks a significant milestone in global reach and counterparty depth, welcoming Iceland and Peru to the suite, increasing the total netting coverage to 71 jurisdictions.
It has also expanded coverage across 15 markets, including Australia, Canada, Japan, Saudi Arabia, and the UAE, in response to subscriber demand.
While all opinions cover companies, banks, and securities dealers, the 2026 update also includes (where possible) pension funds, central counterparties (CCPs), trustees, government bodies, and insurance companies.
Coverage of the Digital Assets Annex (DAA) for the GMSLA has also been expanded — in addition to last year’s coverage of Belgium, England, France, Germany, Luxembourg, and Switzerland, the 2026 opinions now include Hong Kong and the US.
According to the association, ISLA’s netting opinions provide the certainty that the close‑out netting provisions in the title‑transfer versions of the GMSLA are legally enforceable, including upon insolvency of a counterparty.
For regulated banks, these opinions are a mandatory pre-condition to: treat multiple transactions as a single net exposure, apply Credit Risk Mitigation (CRM) for regulatory capital calculations, and avoid gross exposure recognition, which would materially inflate capital and leverage requirements.
Tina Baker, head of legal services at ISLA, states: “ISLA netting opinions are not merely legal comfort documents — they are a core capital-efficiency tool.
“At a time when regulatory scrutiny on liquidity and leverage is at an all-time high, providing our members with the legal certainty to net exposures is essential for maintaining market liquidity and robust balance sheet management.”
According to ISLA, the 2026 suite marks a significant milestone in global reach and counterparty depth, welcoming Iceland and Peru to the suite, increasing the total netting coverage to 71 jurisdictions.
It has also expanded coverage across 15 markets, including Australia, Canada, Japan, Saudi Arabia, and the UAE, in response to subscriber demand.
While all opinions cover companies, banks, and securities dealers, the 2026 update also includes (where possible) pension funds, central counterparties (CCPs), trustees, government bodies, and insurance companies.
Coverage of the Digital Assets Annex (DAA) for the GMSLA has also been expanded — in addition to last year’s coverage of Belgium, England, France, Germany, Luxembourg, and Switzerland, the 2026 opinions now include Hong Kong and the US.
According to the association, ISLA’s netting opinions provide the certainty that the close‑out netting provisions in the title‑transfer versions of the GMSLA are legally enforceable, including upon insolvency of a counterparty.
For regulated banks, these opinions are a mandatory pre-condition to: treat multiple transactions as a single net exposure, apply Credit Risk Mitigation (CRM) for regulatory capital calculations, and avoid gross exposure recognition, which would materially inflate capital and leverage requirements.
Tina Baker, head of legal services at ISLA, states: “ISLA netting opinions are not merely legal comfort documents — they are a core capital-efficiency tool.
“At a time when regulatory scrutiny on liquidity and leverage is at an all-time high, providing our members with the legal certainty to net exposures is essential for maintaining market liquidity and robust balance sheet management.”
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