Repurchase transaction: Difference between revisions
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Interestingly, a repo is one of the qualifying [[ISDA transaction types]] and could be effected under an {{isdama}} and would qualify as a legitimate netting transaction, even though, of course one normally effects repo transactions under a {{gmra}}. |
Revision as of 11:44, 13 March 2017
Interestingly, a repo is one of the qualifying ISDA transaction types and could be effected under an ISDA Master Agreement and would qualify as a legitimate netting transaction, even though, of course one normally effects repo transactions under a Global Master Repurchase Agreement.
- ↑ We assume, for this purpose that under the repurchase transaction, the original seller’s right to repurchase securities is limited to fungible securities and that it has no right to repurchase the exact same securities that it originally sold. This assumption is consistent with market practice, as far as we are aware, in relation to securities repurchase transactions governed by English law, and is necessary to avoid a risk that the transaction might otherwise be characterised by an English court as a secured loan. [Footnote is ISDA’s]