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The International Securities Market Association (ISMA) has complained to the EU Banking Federation over its proposal for a European master agreement for repo transactions. ISMA has sponsored its own master agreement the Global Master Repurchase Agreement (GMRA) since 1992 supported by legal opinions from counsel in 30 countries in order to establish a global standard. It argues that an EU agreement is unnecessary and likely to create confusion in the repo market. Thomas Hunzinker, general counsel to ISMA in Zurich, says the draft proposal goes beyond standardizing the different agreements used for domestic transactions in the EU. "We would not be concerned with the attempt by the Federation to standardize national agreements and bring them more into line with European standards but we are concerned if what they are trying to do is to undermine or replace the GMRA," says Hunzinker. "It very clearly refers to a standard document that could be used for cross-border transactions within the EU and that raised a few eyebrows." Hunzinker has tried to clarify the scope of the proposal with representatives of the Banking Federation but has received no reply from the secretary general in Brussels nor from the domestic banking federations which are constituent members. Secretary general of the Federation Nicolaus Bömcke refused to return calls.

Linklaters & Alliance Linklaters & Paines (UK):

New legislation in Australia removes doubts as to the enforceability of netting in insolvency. It should boost local financial institutions. By John Stumbles and Edward Kerr of Mallesons Stephen Jaques, Sydney

US firm Curtis, Mallet-Prevost, Colt & Mosle has opened an office in Milan. A joint venture with Italian firm Studio Legale Gilioli, the office is headed by partner Eric Gilioli and takes the name Curtis, Mallet-Prevost & Gilioli. Curtis Mallet-Prevost sees Italy as an important addition to its European network of offices in Frankfurt, London and Paris. Managing partner of the firm George Kahale explains: "There is a lot of international work, both inbound and outbound, between Italy and the US. Our firm is also very active in Latin America and the Middle East and we have existing business in Milan representing a number of multinationals doing business in those areas." The firm will aim to build on existing strengths including corporate M&A work, joint ventures and project finance.

With the increased use of subordinated debt in projects, lawyers are faced with novel negotiating situations. This article considers the problem areas. By Peter Avery of Clifford Chance, Tokyo

New York-based LeBoeuf Lamb Greene & MacRae has announced the opening of two new foreign offices, in Paris and Sao Paulo. In Paris, LeBoeuf has taken over the French practice of Donovan Leisure Newton & Irvine. Donovan has been struggling for survival since Californian rival Orrick Herrington & Sutcliffe poached two-thirds of its lawyers in April, after an unsuccessful attempt to merge. James Johnson, managing partner of LeBoeuf's London office comments: "Donovan's disruption provided us with a great opportunity to get a fine office, already familiar with an American firm, and lawyers which many of us already knew." Former Donovan partners René de Monseignat, Alain de Foucaud and Reid Feldman have been made partners in LeBoeuf, with Laurent Moury and Olivier Laude joining as counsel. US partner Douglas Hawes will move to Paris to organize the integration of the office into LeBoeuf's international network. The office will also have eight associates and it will maintain its specialization in the pharmaceutical and biotechnology industries. Deputy managing partner of the office, Alain de Foucaud, explains: "LeBoeuf is an important firm with a solid reputation in the US, and was willing to expand across Europe and internationally. The team of avocats has worked together for the past three years and we wanted to keep it intact and preserve our culture. It is easier this way because there are fewer changes both for the clients and for our lawyers." In Sao Paulo, local firm Tavares Guerreiro Advogados has affiliated with LeBoeuf.

The latest WTO negotiations have brought financial services under international discipline for the first time, adding an essential missing piece to GATS. By Peter Morrison* of Clifford Chance, London

China has launched a programme of reforms to the regulation of the financial sector. The insurance industry is already open to foreign competition, most in the form of joint ventures. By Jingzhou Tao of Coudert Brothers, Beijing

The Monetary Authority of Singapore has accepted the recommendations of the Financial Sector Review Group for new disclosure policies for banks, to make Singapore banks more transparent and accountable while having little impact on their balance sheets. The recommendations are expected to be implemented within the financial year, and include:

Legislation was recently introduced into New Zealand's parliament to reform various aspects of the law on payments finality and netting arrangements. The aim of these amendments is to increase the efficiency of, and reduce the risk in, New Zealand's financial system. The amendments have been promoted by the Reserve Bank of New Zealand in conjunction with the introduction of real-time gross settlement of high value interbank transactions (see International Financial Law Review, April 1998, page 55). It should be noted, however, that it is proposed that these amendments apply to companies and individuals as well as banks.