3.7 Repos

A reciprocal purchase agreement (repo) involves an agreement for the sale by one entity (A) to another entity (B) of securities having agreed features entered into at the same time and related to another agreement for the sale by B to A of securities having the same features. The second transaction is settled on a day after the first transaction is settled.

In Australia, repos generally are documented using the ICMA Global Master Repurchase Agreement.  Further details on this agreement can be found in 2.2 "GMRA".

While it is also possible to document repos using an ISDA Master Agreement, this is far less common and is not covered in this Guide.  The Guide formerly contained commentary on entering into a repo using the ISDA Master Agreement and this commentary can be found in 6 "History".

Last Update Date 29 Jun 2011