The DFM may now process requests for transfer of securities listed on DFM for Repo transactions
between a Repo seller and a Repo buyer who have agreed on a repurchase agreement in accordance with DFM requirements, the statement added.
subsidiary, MFGUK, then repoed them back to MFGUK, which then initiated another repo transaction
with the London Clearing House (LCH).
Commercial Bank of Africa (CBA) and Standard Bank of Southern Africa (SBSA) have executed a USD25 million cross-currency repo transaction
in a deal facilitated and guaranteed by Frontclear, the company said.
Once a trade has been brokered, the IDB submits the trade details to FICC, which, acting as a central counterparty, interposes itself and becomes the legal counterparty to each side of the repo transaction
for settlement purposes.
Issuers' investments in repo transactions
shall not exceed the repo
However, the available evidence suggests that the level and sensitivity of haircuts depend on the kind of repo transaction
A CCP would provide insurance against collateral risk and ensure settlement associated with the repo transaction
Lehman vetted the concept of a SFAS 140 repo transaction
with its outside auditor, before the firm formalized a Repo 105 accounting policy and approved Repo 105 transactions for use by firm personnel (Examiner's Report, 2010, Vol.
If one party to the repo transaction
fails, the other party can unilaterally terminate the transaction and keep the cash or sell the bond, depending on which side of the transaction that party has taken.
Term repo: Any repo transaction
with an initial maturity longer than one business day.
In a repo transaction
a security (such as bonds or shares) is purchased or exchanged for cash and, at the same time, the parties agree that the seller will repurchase or re-acquire the equivalent security at a date in the future.
A repo transaction
expands the level of money supply as it increases the bank's level of reserves while the reverse repo translates to a contraction in money supply as it reduces the reserve account of banks.