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The deutscher rahmenvertrag (literally, “framework agreement”) is the German master agreement, also known as the “DRV”[1] or just the plain old “rahmenvertrag”. It is published by Bundesverband deutscher Banken and comes in at least three varieties, all governed by German law. I know very little about them, other than their names, and that they are used for swaps, repo and stock lending:
- Derivatives and Futures: Deutscher Rahmenvertrag für Finanztermingeschäfte — we will call this the DRV-F or the swap DRV.
- Repo: Deutscher Rahmenvertrag für Wertpapierpensionsgeschäfte — we will call this the DRV-WP, or the repo DRV.
- Stock loans: Deutscher Rahmenvertrag für Wertpapierdarlehen (Stock lending)— we will call this the DRV-WD or the stock loan DRV.
The DRV has a collateral annex the Besicherungsanhang für Variation Margin which, charmingly, translates as “safety attachment”.